Pravin N. Gala And Others vs Securities & Exchange Board Of India

Tarun Agarwala, Presiding Officer

Based on the show cause notice, the Whole Time Member (hereinafter referred to as ‘WTM’) of Securities and Exchange Board of India

(hereinafter referred to as ‘SEBI’) passed an order issuing a slew of directions. The order of WTM was challenged by filing various appeals

which were heard and decided by this Tribunal by its order dated October 10, 2019 (as corrected by order dated February 6, 2020) wherein certain

reliefs were granted and certain findings of the WTM were set aside.

Based on the same violation, a show cause notice was also issued by the Adjudicating Officer (hereinafter referred to as ‘AO’) which

culminated into a penalty order dated October 30, 2019 against which the present appeals have been filed by various noticees. All these appeals are

being decided together.

We find from a reading of the impugned order that the charges levelled against the appellants are virtually the same as that levelled in the order of

the WTM. Similar findings have been arrived at by the AO which are more or less identical to the findings given by the WTM and which findings

have been set aside by us to a certain extent.

In the light of the aforesaid, we are of the opinion that in view of our order dated October 10, 2019 passed in Appeal No. 361 of 2018 and other

companion appeals, the impugned order passed by the AO cannot be sustained and are quashed.

All the appeals are allowed. The matters are remitted to the AO to decide afresh in the light of the observation made by us in our order dated

October 10, 2019. In the circumstances of the case, parties shall bear their own costs.