Supreme Court - Daily Orders
N.H. Securities Ltd. vs Securities And Exchange Board Of India on 17 September, 2019
Bench: Sanjay Kishan Kaul, K.M. Joseph
IN THE SUPREME COURT OF INDIA
CRIMINAL APPELLATE JURISDICTION
CRIMINAL APPEAL NO.1407 OF 2019
(Arising out of S.L.P.(Criminal) No.1132 of 2019)
N.H.SECURITIES LTD. & ORS. ... APPELLANT(S)
VS.
SECURITIES AND EXCHANGE BOARD OF INDIA
& ANR. ... RESPONDENT(S)
O R D E R
We have heard learned counsel for the parties. The Adjudication Order dated 22nd April, 2003 leaves no matter of doubt that the appellants before us were in violation of Regulation 7(1) and (2) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 read with Section 15(A)(b) of Securities and Exchange Board of India Act, 1992 (for short ‘SEBI Act’) and thus penalty amount of Rs.1,50,000/- (Rupees one lakh fifty thousand) was levied on the appellants. This amount however was not deposited by the appellants resulting in prosecution proceedings being initiated under Section 24(2) of SEBI Act on 14th January, 2013.
During the pendency of those prosecution proceedings, it appears that the appellants approached Signature Not Verified Digitally signed by ANITA MALHOTRA Date: 2019.09.18 16:13:19 IST Reason: the Special Court, SEBI for compounding which was rejected on 27th December, 2017 and the further endeavour 1 of the appellants to assail that order before the Bombay High Court was rejected vide impugned order dated 30th October, 2018.
It has been brought to our notice that in pursuance of the Adjudication Order, a notice of demand dated 21st September, 2017 was served on the appellants which included the penalty amount as also the interest from the date of imposition of the penalty to the date of the notice @ 12% p.a. amounting to Rs.2,59,693/- (Two lakhs fifty nine thousand six hundred ninety three) apart from recovery cost of Rs.1,000/- (Rupees one thousand). Thus, the total amount which the appellants were liable to pay was Rs.4,10,693/- (Rupees four lakhs ten thousand six hundred ninety three). As rightly pointed out by learned senior counsel for the respondents that the amount of interest would have grown on account of passage of time.
Learned counsel for the appellants states that the appellants have already deposited a sum of Rs.1,50,000/- (Rupees one lakh fifty thousand) on 2nd May, 2019 and that the interest amount due till the date of deposit @ 12% p.a. would be deposited within two weeks.
Learned senior counsel for the respondents state if the said amount is so deposited, the respondents would have no objection, in the given facts of the case, to compounding of the offence subject to any penalty which may be imposed under Section 24(2) of the said Act.
In view of the facts set out herein and the age of 2 the directors, despite the earlier reservation expressed by the respondents in the counter affidavit on account of the conduct of the appellants, we are inclined to compound the offence on the aforesaid amount being paid as assured before us by learned counsel for the appellants, subject to the penalty amount of Rs.2,00,000/- (Rupees two lakhs). This amount should also be deposited with the Securities and Exchange Board of India within the same period of two weeks.
The appeal is accordingly disposed of. We make it clear that we have not commented one way or the other on the larger questions said to be raised by the appellants.
......................J. [SANJAY KISHAN KAUL] ......................J. [K.M.JOSEPH] New Delhi;
September 17, 2019.
3
ITEM NO.1 COURT NO.11 SECTION II-A
S U P R E M E C O U R T O F I N D I A
RECORD OF PROCEEDINGS
Petition(s) for Special Leave to Appeal (Crl.) No(s). 1132/2019
(Arising out of impugned final judgment and order dated 30-10-2018 in CRLWP No. 1894/2018 passed by the High Court of Judicature at Bombay) N.H. SECURITIES LTD. & ORS. Petitioner(s) VERSUS SECURITIES AND EXCHANGE BOARD OF INDIA & ANR. Respondent(s) (FOR ADMISSION and I.R. and IA No.19225/2019-EXEMPTION FROM FILING C/C OF THE IMPUGNED JUDGMENT ONLY IA NO. 33137/19 (APPROPRIATE ORDERS/DIRECTIONS) IS TO BE LISTED) Date : 17-09-2019 This matter was called on for hearing today. CORAM :
HON'BLE MR. JUSTICE SANJAY KISHAN KAUL HON'BLE MR. JUSTICE K.M. JOSEPH For Petitioner(s) Ms. Kamini Jaiswal, AOR Ms. Rani Mishra,Adv.
Mr. Jatinerpal Singh,Adv.
For Respondent(s) Mr. Chander Uday Singh,Sr.Adv.
Mr. Pratap Venugopal,Adv.
Ms. Surekha Raman,Adv.
Ms. Viddusshi,Adv.
Mr. Akhil Abraham Roy,Adv.
For M/S. K J John And Co, AOR
UPON hearing the counsel the Court made the following O R D E R Leave granted.
The appeal is disposed of in terms of the signed order.
Pending applications shall also stand disposed of.
(ANITA MALHOTRA) (ANITA RANI AHUJA)
COURT MASTER COURT MASTER
(Signed order is placed on the file.) 4