BEFORE THE SECURITIES APPELLATE TRIBUNAL
MUMBAI
Date of Decision : 23.07.2019
Appeal No. 274 of 2018
KSS Ltd.
Unit No. 101A and 102, 1st Floor,
Plot No. B-17, Morya Landmark – II,
Andheri (West), Mumbai – 400053.

….. Appellant
Versus
Securities and Exchange Board of India
SEBI Bhavan, Plot No. C-4A, G Block,
Bandra Kurla Complex, Bandra (East),
Mumbai – 400 051.

… Respondent
Mr. Pulkit Sharma, Advocate with Mr. Saurabh Bachhawat,
Advocate i/b Lalit Joshi for the Appellant.
Mr. Kumar Desai, Advocate with Mr. Chirag Bhavsar, Advocate i/b
MDP & Partners 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, Presiding Officer (Oral)
1.

We have heard the learned counsel for the parties. Against the
ex-parte order dated May 11, 2018 the present appeal has been filed
for alleged violation of non-disclosure of the pledged shares by the
promoters and non-implementation of the certain corporate
announcements. A show cause notice dated November 24, 2017 was
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issued. After receiving the complete copy of the show cause notice,
the appellant prayed on April 20, 2018 before the Adjudicating
Officer (hereinafter referred to as, ‘AO’) seeking six weeks time to
file a reply. The AO however, granted only three weeks time to file a
reply and fixed May 8, 2018 for hearing.
2.

It transpires that on May 7, 2018, the appellant wrote a letter
requesting three weeks further time to file a reply. This request was
apparently rejected and the impugned order was passed.
3.

Considering the facts and circumstances that have been brought
on record, we are of the opinion that the appellant was not delaying
the proceedings and therefore, the AO ought to have granted further
time to file a reply. Denial of such right amounts to violation of the
principles of natural justice. Consequently, on this short ground the
impugned order dated May 11, 2018 in so far as it relates to the
appellant cannot be sustained and is quashed though, in our opinion,
the appellant is equally to be blamed for the ex-parte proceedings as
it had sent the adjournment letter one day before the date of hearing.
Thus, the appeal is allowed on payment of costs of Rs. 50,000/which shall be deposited before SEBI on or before the date fixed by
us hereinafter.

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4.

The matter is remitted to the AO to decide the matter afresh
after giving an opportunity of hearing to the appellant.
5.

For the aforesaid purpose, we direct the appellant to appear
through its authorized representative on August 23, 2019 alongwith
his reply. It is made clear that no further time will be granted to the
appellant to file his reply. Upon receipt of the reply, the AO will
proceed from there onwards and after providing an opportunity of
hearing shall decide the matter within four months thereafter.

Sd/Justice Tarun Agarwala
Presiding Officer
Sd/Dr. C. K. G. Nair
Member
Sd/Justice M. T. Joshi
Judicial Member
23.07.2019
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