Prakash D. Naik, J. - (1.) Heard both sides for final disposal.
(2.) This petition is preferred by invoking Article 227 of Constitution of India and inherent powers under section 482 of Code of Criminal Procedure, 1973 to quash the order dated 27th December, 2017 passed by SEBI Special Court at Mumbai in SEBI Special Case No. 219 of 2014 rejecting the application preferred by the petitioners under Section 24A of the Securities and Exchange Board of India Act, 1992 (for short 'SEBI Act').
(3.) The petitioner No.1 is a company registered under the Companies Act 1956 and petitioner Nos.2 and 3 are purportedly the Directors of Petitioner No.1 who were facing prosecution under Section 24(2) of SEBI Act. The Respondent No.1 conducted investigation into an allegation of acquisition of shares of Shonkh Technologies International Limited by certain entities in excess of the limits prescribed under regulations 7 and 10 of SEBI Regulations 1997. The acquisition of shares by petitioner No.1 was allegedly found to be in violation of the takeover regulations and the respondent No.1 therefore initiated adjudication proceedings against the petitioner No.1. By order dated 27th April, 2003, the Adjudication Officer appointed by Respondent No.1 imposed a penalty of Rs.1,50,000/ for violation of Regulation of 7(1) and (2) of takeover Regulations and Section 15(A)(b) of SEBI Act to be paid within 45 days of receipt of the adjudication order. The petitioner No.1 preferred an appeal before the Securities Appellate Tribunal against the aforesaid adjudication order. The said appeal was dismissed by order dated 9th January, 2007. The petitioner No.1 was unable to pay the entire amount and by letter dated 26th February, 2007 forwarded part payment of the penalty amount by way of demand draft. However, the said demand draft was not encashed and was returned by Respondent No.1. Subsequently, on 14th January, 2013 the Respondent No.1 filed a complaint before the Court of Metropolitan Magistrate at Bandra under Section 26 read with Section 24(2) and Section 27 of SEBI Act on account of nonpayment of penalty imposed by Adjudicating Officer. The said complaint was subsequently transferred to SEBI Special Court and is presently pending in the said Court.;