BEFORE THE SECURITIES APPELLATE
TRIBUNAL
MUMBAI
Appeal No.�� 118/2002
In the matter of:
Coram: ����������� Justice
Kumar Rajaratnam, Presiding Officer ����������� Dr.
B. Samal, Member ����������� N.L.
Lakhanpal, Member Per:� Justice
Kumar Rajaratnam, Presiding Officer
1.
Appeal is taken up with
consent of parties.� The appellant was
the director of Viswapriya Financial Services & Securities Ltd.� The respondent purporting to act under
Section 11B read with Regulation 11 of SEBI (Prohibition of Fraudulent and
Unfair Trade Practices relating to Securities Market) Regulations, 1995
prohibited the appellant as a director of the company in his personal capacity
from accessing the capital market and dealing in securities for a period of
five years. It is not necessary to deal with the facts of the case.��
2.
The alleged misconduct was
in November 1995.� The show cause notice
was issued to the company on 13.12.2000.�
It was submitted by the learned counsel for the respondent that the show
cause notice issued to the company would suffice for passing the impugned order
against Mr. Subramanian.�
3.
We cannot persuade
ourselves to accept this proposition.��
The impugned order is directed against Subramanian and no show cause
notice was issued to Subramanian in his personal capacity and yet he was banned
from the capital market for a period of 5 years.� Natural justice requires that show cause notice should be issued against Subramanian if any
adverse order is passed against him.� In
that view of the matter, only insofar as Subramanian is concerned, the impugned
order is set aside and the appeal is allowed.�
No order as to costs. (Pronounced in Court)
Place: Mumbai Date: 08.07.04 //sr04712 |
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