2010 (12) TMI 1070 - HC - Companies Law

Summary

Issues:
1. Quashing of fine imposition orders by the trial court under SEBI Act.
2. Conviction under SEBI Act for violation of regulations.
3. Applicability of amended provisions of SEBI Act to offenses committed prior to 2002.
4. Jurisdiction of Sessions Court to try cases under amended SEBI Act.
5. Power of Sessions Court to impose penalties exceeding those of Magistrate's Court.

Analysis:

1. The petitioners sought to quash the fine imposition orders by the trial court under SEBI Act. The petitioners were convicted for violating SEBI regulations and were sentenced to rigorous imprisonment and fines. The judgment was delivered by the Additional Sessions Judge due to the amended provisions of SEBI Act in 2002, transferring jurisdiction to Sessions Court for such cases.

2. The counsel for the petitioners argued that since the offense occurred before 2002, the un-amended provisions of Cr. P.C. should apply, questioning the legality of the fine imposed by the Sessions Judge. The petitioners cited legal precedents to support their argument, emphasizing the prohibition of convictions or penalties under 'ex post facto' laws.

3. Referring to the legal precedents cited by the petitioners, the Court clarified that trial by the Sessions Court after the amendment of SEBI Act was constitutional. The Court highlighted that the Sessions Judge had the jurisdiction to entertain complaints under the amended Act, even for offenses committed prior to the amendment.

4. The Court addressed the question of whether the Sessions Court could impose penalties exceeding those of a Magistrate's Court. It was established that the Sessions Judge had the authority to impose sentences according to the law, not bound by the powers of a Magistrate. Even if a Magistrate's power to impose a penalty was limited, a higher penalty could be imposed by the Sessions Court if deemed necessary.

5. Ultimately, the Court dismissed the petition, finding no merit in the arguments presented. The judgment upheld the legality of the trial conducted by the Sessions Court and the imposition of fines in accordance with the un-amended provisions of the SEBI Act. The decision affirmed the authority of the Sessions Court to exercise its sentencing powers independently.

This detailed analysis of the judgment provides a comprehensive understanding of the legal issues involved and the Court's reasoning in addressing each aspect of the case.