9911796707
TMI Blog2015 (7) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... inary issue as well as merits together and pass one composite order, in the facts of present case, in our opinion, SEBI was not justified in passing impugned order on merits without making it clear to the appellants that at the personal hearing appellants would be heard both on the preliminary issue and on merits. - In these circumstances, the impugned order is quashed and set aside and the matters are restored to the file of the WTM of SEBI for passing common order on the preliminary issue. - Appeal No. 288 of 2014, Appeal No. 289 of 2014, Appeal No. 290 of 2014, Appeal No. 291 of 2014, Appeal No. 292 of 2014 - - - Dated:- 5-2-2015 - J.P. Devadhar, Jog Singh and A.S. Lamba, JJ. For The Appellant : Mr. Janak Dwarkadas, Senior Advoc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whole time member for issuing a fresh/supplementary show cause notice to the appellants laying therein a specific charge that they being connected/ deemed to be connected persons were insiders within the meaning of the Regulations in addition to the allegations already made and thereafter decide all the issues afresh in accordance with law after affording an opportunity of hearing to the appellants. 4. Accordingly, fresh show cause notice was issued though belatedly on December 27, 2012. In the reply to the show cause notice filed by appellants on May 08, 2013, appellants had sought clarification as to whether the show cause notice dated December 27, 2012 was a supplementary show cause notice to the earlier show cause notice dated Dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oceeded to decide the matters on merit against the appellants. 7. Question therefore to be considered is, whether, the appellants are justified in contending that the impugned order is violative of the principles of natural justice on ground that the said order has been passed without giving an opportunity of hearing on merits and also on ground that the said order is passed after 11 months of granting personal hearing. 8. Mr. Desai, learned counsel appearing on behalf of SEBI submitted that the appellants in their reply/written statement, apart from raising the preliminary issue had also dealt with the merits of the case and therefore the WTM of SEBI was justified in dealing with the preliminary issue and also on the merits of the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were considered as insiders in the fresh show cause notice issued to the appellants on December, 27, 2012. 12. For the aforesaid reasons, we find merit in the contention of the appellants that in the personal hearing granted on August 13, 2013 appellants had argued only on the preliminary issue and that they were under the impression that fresh hearing would be given to them in case the preliminary issue is decided against the appellants. While making it clear that it is open to SEBI to hear on preliminary issue as well as merits together and pass one composite order, in the facts of present case, in our opinion, SEBI was not justified in passing impugned order on merits without making it clear to the appellants that at the personal he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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