Spectrum.Com Pvt. Ltd. vs Securities and Exchange Board of India on 16 December 2008

BEFORE THE SECURITIES APPELLATE TRIBUNAL

MUMBAI

Appeal No. 119 of 2006

Date of decision : 16.12.2008

Spectrum.Com Pvt. Ltd. …… Appellant

Versus

Securities and Exchange Board of India …… Respondent

Mr. P. N. Modi Advocate with Mr. N. P. Lashkari Advocate for the Appellant.

Mr. Kumar Desai Advocate with Ms Daya Gupta and Ms. Chloris John Advocates for the Respondent.

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

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

By order dated November 28, 2003 passed by the adjudicating officer, a monetary penalty of Rs.One crore has been levied on the appellant under section 15A(a) of the Securities and Exchange Board of India Act, 1992 on the ground that it failed to respond to three summons dated 10.6.2002, 18.6.2002 and 1.4.2003 issued to it during the course of the investigations carried out by the Securities and Exchange Board of India (for short the Board). The adjudicating officer has proceeded on the basis that the appellant did not respond at all to any of the three summons. The appellant, however, contends that in response to the summons dated 10.6.2002 which was received by it on 19.6.2002, a detailed reply was sent and that the requisite information was furnished to the Board. It is not disputed that the appellant had filed its reply on receipt of the summons dated 10.6.2002. The adjudicating officer has not considered the response of the appellant. In this view of the matter, the impugned order cannot be sustained. We accordingly allow the appeal and set aside the impugned order. Even though the matter is quite old, it will be open to the Board to

2 initiate fresh proceedings against the appellant if it so decides. In that event the proceedings shall be concluded expeditiously but not later than June 30, 2009. We are fixing this time limit in the hope that the appellant will fully cooperate in the proceedings if initiated by the Board. No costs.

Sd/-

Justice N.K. Sodhi

Presiding Officer

Sd/-

Utpal Bhattacharya

Member

16.12.2008 ddg