Jyoti Munver vs Securities And Exchange Board Of India

Tarun Agarwala, Presiding Officer

For the reasons stated in the application, the delay in the filing of the appeal is condoned. The application is allowed.

We have heard the learned counsel for the parties. The appellant has challenged the order dated 29th August, 2022 whereby a penalty of Rs.10 lakhs have been imposed on the appellant to be paid jointly and severally with the other noticees for not complying with the summons.

There is a delay in the filing of the appeal. The ground urged is that the appellant was never served with a show cause notice. In this regard, a reply has been filed and, from a perusal of the reply, we find that no proof has been submitted by the respondent to show that the show cause notice was served. The proof that has been filed is an affixation notice regarding the notice for hearing.

In our opinion, this is not sufficient proof of service. Until and unless the show cause notice is served the entire proceedings is violative of the principles of natural justice. On this ground the impugned order insofar as it relates to the appellants is quashed. The appeal is allowed. The matter is remitted to the AO to pass a fresh order in accordance with law after serving the show cause notice and after providing an opportunity of hearing.

In this regard, the appellant shall appear before the AO on 10th May, 2023 on which date the appellant will be served with the show cause notice and the matter will proceed thereafter in accordance with law. Misc. application no.346 of 2023 is accordingly disposed of.

This order will be digitally signed by the Private Secretary on behalf of the bench and all concerned parties are directed to act on the digitally signed copy of this order. Certified copy of this order is also available from the Registry on payment of usual charges.