2021 (12) TMI 1319 - HC - SEBI

Confidentiality of the settlement and/or compromise and/or arrangement arrived - HELD THAT - Advocates appearing for Respondent Nos.1 to 10, 11 and 12 have submitted that the Order dated 28th October, 2021, is passed by consent. In fact, Advocate Khandeparkar representing Respondent Nos.1 to 10 states that SEBI was not only represented during the hearing of the matter but SEBI was also present during the settlement talks held on six occasions. Senior Advocate appearing for SEBI states on instructions, that save and except the fact that SEBI was represented before the Learned Single Judge at the time of hearing, SEBI disputes all the other statements/ submissions made on behalf of Respondent Nos. 1 to 10, 11 and 12. In view of the above, before we proceed further, we allow SEBI to seek a clarification from the Learned Single Judge qua the allegation that SEBI has consented to the impugned Order being passed. In view of the urgency, parties may move the Learned Single Judge today itself and obtain necessary clarification.

Summary

Issues:
1. Impugning an order dated 28th October, 2021.
2. Dispute regarding consent to the impugned order.
3. Seeking clarification from the Learned Single Judge.
4. Scheduling the appeal for admission on 6th December, 2021.

Analysis:
1. The appellant, SEBI, challenged the Order dated 28th October, 2021, which contained clauses regarding confidentiality of settlement and disposal of the suit based on the compromise between the parties. The order was subject to the peculiar facts and circumstances of the case and had the consent of all parties involved.

2. The advocates for the respondents claimed that the Order was passed with SEBI's consent, stating SEBI's presence during settlement talks and hearings. However, SEBI disputed these claims, asserting its representation only during the hearing. To clarify the alleged consent, SEBI was permitted to seek clarification from the Learned Single Judge regarding its involvement in agreeing to the impugned Order.

3. Due to the urgency of the matter, the parties were directed to approach the Learned Single Judge promptly to obtain the necessary clarification regarding SEBI's consent to the Order dated 28th October, 2021.

4. The High Court clarified that the appeal was not disposed of and scheduled it for admission on 6th December, 2021, to be given priority on the court's docket for further proceedings and consideration of the issues raised in the appeal.