Chandresh Narottam Mehta vs V.K. Chopra, Wholetime Member Securities and Exchange Board of India on 17 December 2008

BEFORE THE SECURITIES APPELLATE TRIBUNAL

MUMBAI

Appeal No. 74 of 2008

Date of Decision : 17.12.2008

Chandresh Narottam Mehta ...... Appellant

Versus

V.K. Chopra, Wholetime Member

Securities and Exchange Board of India ...…Respondent

Mr. Zal T. Andhyarujina Advocate for the Appellant. Dr. Poornima Advani Advocate with Ms. Harshada Nagare Advocate for the Respondent.

Coram : Justice N.K. Sodhi, Presiding Officer Utpal Bhattacharya, Member

Per : Justice N.K. Sodhi, Presiding Officer (Oral)

Without going into the merits of the contentions raised by the learned counsel for the parties, we are inclined to set aside the impugned order qua the appellant on the ground that he was not served with a show cause notice which is said to have been issued to him. The respondent Board alleges that a show cause notice dated 26.5.2004 had been sent to the appellant. The specific stand of the appellant is that he did not receive this show cause notice. The learned counsel for the respondent is unable to place before us any material which could show the service of notice on the appellant. It is true that a notice of hearing for 28.9.2007 was served on the appellant as admitted by him in para 5.9 of the memorandum of appeal but that does not cure the defect of non service of the show cause notice. If the show cause notice has not been served the appellant was obviously prejudiced in the matter of putting up his defence. In this

.2. view of the matter, the impugned order only qua the appellant is set aside and the case is remanded to the Board for a fresh decision in accordance with law after serving the show cause notice on the appellant. The appeal is accordingly allowed but with no order as to costs.

Sd/-

Justice N.K. Sodhi

Presiding Officer

Sd/-

Utpal Bhattacharya

Member

17.12.2008 RHN