Pravin L. Somani And Others vs Securities And Exchange Board Of India

Tarun Agarwala, Presiding Officer

We have heard Mr. P. N. Modi, the learned senior counsel for the appellants and Mr. Shyam Mehta, the learned senior counsel for the respondent

through video conference.

The present appeal has been filed questioning the legality of the ex-parte ad-interim order cum show cause notice dated August 7, 2020 passed by

the Whole Time Member (hereinafter referred to as ‘WTM’) of Securities and Exchange Board of India (hereinafter referred to as

‘SEBI’). By this order the appellants have been restrained from accessing the securities market and the bank accounts, demat accounts have

also been frozen. Further, the appellants have been restrained from alienating movable and immovable assets, etc. The WTM further directed the

appellants to deposit the disgorged amount of Rs. 16.97 lacs in an escrow account.

It has been contended that the aforesaid amount has been deposited and, therefore, direction in paragraph No. 43.4 of the impugned order had been

complied with. It was submitted that the interest of SEBI has been protected and, therefore, there was no reason for continuation of the frezzing of

the demat accounts and bank accounts as well as restraining the appellants from alienating their assets.

Having heard the learned counsel for the parties, we are of the opinion that the appellants should file an appropriate reply / objection to the ad-

interim order and pray for the vacation of the restraint order. It has been stated that the appellant would do so within a week from today.

We accordingly dispose of the appeal without going into the merits directing the appellants to file their reply / objection on or before December 15,

2020. If such an objection is filed, the WTM will consider the objection and pass a reasoned and speaking order on or before December 31, 2020 after

giving an opportunity of hearing to the appellants.

The present matter was heard through video conference due to Covid-19 pandemic. At this stage it is not possible to sign a copy of this order nor a

certified copy of this order could be issued by the Registry. In these circumstances, this order will be digitally signed by the Presiding Officer on behalf

of the bench and all concerned parties are directed to act on the digitally signed copy of this order. Parties will act on production of a digitally signed

copy sent by fax and/or email.