TMI Blog2021 (4) TMI 1273X X X X Extracts X X X X X X X X Extracts X X X X ..... 2019, was certainly a premature writ petition and therefore, the writ appeal is allowed. The order passed by the learned Single Judge is hereby set aside. The appellant SEBI is directed to conclude the proceedings within a period of six months from the date of receipt of certified copy of this judgment. The appellant Board shall not grant unnecessary adjournment in the matter and in case need so arises for grant of an adjournment, reasons for such adjournment shall be recorded in writing. - Writ Appeal No. 270/2021 (GM-RES) - - - Dated:- 9-4-2021 - Mr. Justice Satish Chandra Sharma And Mr. Justice S Vishwajith Shetty, JJ. For The Appellant : Sri R.V.S Naik, Senior Counsel, A/w Sri Nitin Prasad Sri Vidur Nair And Sri Suryanar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Regulator of the securities market is duty bound to take steps for redressal of investors grievances and is also empowered to take action by initiating necessary proceedings under Sections 11(1), 11(4) and 11B or Section 15C of the SEBI Act. The appellant in exercise of powers conferred under Sections 11 and 11B of the SEBI Act issued a show notice on 20.10.2016 to the Company and it s Directors calling upon them to show cause as to why suitable directions under Section 11 and 11B of the SEBI Act should not be issued against them for violating the provisions of the Companies Act and three week s time was given to them to show cause. 4. Thereafter, a notice dated 20.8.2019 was issued with reference to the earlier show cause notice dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion as per Annexure-B in 2019, calling upon the petitioner to remain present during the hearing. 10. A perusal of the orders passed by Securities Appellate Tribunal noted supra, shows that the said Tribunal has consistently held delay of five years and more in initiating action by the SEBI as unsustainable. In this background, even if petitioner is relegated to SEBI to attend the hearing as contemplated in communication Annexure-B and if petitioner were to suffer any adverse order, he can challenge the same before the Appellate Tribunal. Both cases of the Tribunal cited before this Court are recent judgments of 2019 and 2020. In those cases, the Tribunal has decided the matter only on the point of delay without going into the merits. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority and only on the point of delay, the notice could not have been quashed in the manner and method it has been done. 8. The Apex Court in the case of Union of India Anr., vs. Kunisetty Satyanarayana, reported in (2006) 12 SCC 28, in paragraphs 13 to 16 has held as under; 13. It is well settled by a series of decisions of this Court that ordinarily no writ lies against a charge sheet or show-cause notice vide Executive Engineer, Bihar State Housing Board vs. Ramesh Kumar Singh ( [1996] 1 SCC 327/JT [1995] 8 SC 331), Special Director vs. Mohd. Ghulam Ghouse (AIR 2004 SC 1467), Ulagappa vs. Divisional Commissioner, Mysore ( 2001(10) SCC 639), State of U.P. vs. Brahm Datt Sharma (AIR 1987 SC 943) etc. 14. The reason w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he petition preferred by the respondent against the show cause notice dated 20.10.2016 and notice dated 20.8.2019, was certainly a premature writ petition and therefore, the writ appeal is allowed. The order passed by the learned Single Judge is hereby set aside. The appellant SEBI is directed to conclude the proceedings within a period of six months from the date of receipt of certified copy of this judgment. The appellant Board shall not grant unnecessary adjournment in the matter and in case need so arises for grant of an adjournment, reasons for such adjournment shall be recorded in writing. With the aforesaid, writ appeal stands allowed. Pending IAs, if any, stand disposed of. - - TaxTMI - TMITax - Securities / SEBI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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