BEFORE THE SECURITIES APPELLATE TRIBUNAL
MUMBAI
Date: 9.7.2019
Misc. Application No.343 of 2019
And
Misc. Application No.344 of 2019
In
Appeal No.222 of 2017
1. Shailesh Baldevbhai Patel
2. HarshadKumar Baldevbhai Patel
2, Punj Bunglows, Nr. Shukan Bunglow,
Nr. Kunjmall, Nikol,
Ahmedabad – 382440.

… Appellants
Versus
Securities and Exchange Board of India
SEBI Bhavan, C-4A, G-Block,
Bandra Kurla Complex,
Bandra (E), Mumbai – 400 051.

…Respondent
Ms. Rinku Valanju, Advocate with Ms. Hiral Shah, Advocate
i/b. C.S. Parinati Jain for the Appellants.
Mr. Gaurav Joshi, Senior Advocate with Ms. Rashi Dalmia
and Mr. Abhishek Mishra, Advocate i/b. The Law Point for
the Respondent.
CORAM: Justice Tarun Agarwala, Presiding Officer
Dr. C.K.G. Nair, Member
Justice M.T. Joshi, Judicial Member
Per : Justice Tarun Agarwala (Oral)
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Misc. Application No.343 of 2019
1.

We have heard learned counsel for the parties in Misc.

Application No.343 of 2019. Against the ex-parte interim
order dated 1st June 2016 and confirmatory order dated
26th May, 2017 the appellants filed Appeal no.222 of 2017
which was disposed of by an order dated 30th January, 2018
directing SEBI to complete the investigation and issue show
cause notice on or before 31st March, 2018. The said order
was subsequently modified by an order dated 10th April, 2018
directing SEBI to issue notices by 30th April, 2018 and
further directed to decide the matter as expeditiously as
possible.
2.

It transpires that the show cause notice was issued on
20th April, 2018 and supplementary show cause notice was
issued on 30th October, 2018. The appellants have filed their
reply and were given an opportunity of hearing in February,
2019. Written submissions have also been filed in March,
2019. The Whole Time Member is yet to pass a final order.
3.

In the meantime, the present application has been filed
praying for various reliefs but at the moment only one relief
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was pressed, namely, that SEBI should be directed to release
the payout of funds or Rs.14 lakhs alongwith interest, if any
withheld for the trades of 27th July, 2015. According to the
appellant, the trades in Dhyana executed on 27th July, 2015
was kept in an escrow account as per the ex-parte interim
order dated 1st June, 2016.
4.

In our opinion, an application for this purpose should be
filed before the Whole Time Member. If such an application
is filed the Whole Time Member shall decide the same within
four weeks. The Misc. Application is disposed of as above.
Misc. Application No.344 of 2019
1.

Amongst the many reliefs which have been prayed the
primary relief which is sought by the appellant is to quash the
show cause notice dated 15th November, 2018 issued by the
Adjudicating Officer. It is urged that the same is not in
accordance with the directions of the Tribunal dated
10th April, 2018 passed in Appeal no.222 of 2017.
2.

Having heard the learned counsel for the parties, we are
of the opinion that objections, if any, should be raised before
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the Adjudicating Officer. We are no inclined to interfere
with the issuance of show cause notice at this stage.
3.

Misc. Application no.344 of 2019 is disposed of
accordingly.

Sd/Justice Tarun Agarwala
Presiding Officer
Sd/Dr. C. K. G. Nair
Member
Sd/Justice M.T. Joshi
Judicial Member
9.7.2019
Prepared and compared by
RHN