R.B. Khandelwal
Case brief
What is this about?
SAT allowed appeal against suspension order, holding a public company not liable for pre-incorporation offenses committed by its director in individual capacity.
What did the court decide?
Impugned order suspending registration certificate for one month was set aside.
What the court decided
A compact analysis
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
BEFORE THE SECURITIES APPELLATE TRIBUNAL
MUMBAI
Appeal No.29/2002
In the matter of;
R.B. Khandelwal
(Director of R.B.K. Share Broking Ltd) Appellant
Vs.
Securities & Exchange Board of India Respondent
Appearance:
Shri T. N. Subramanian,
Advocate
Shri Prateek Seksaria,
Advocate
I/b Gagrat & Co., For Appellant
Issues for consideration
3 issues framed by the court
Whether a public limited company can be held liable for a quasi-criminal penalty for an offense allegedly committed by a director in his individual capacity at a time when the company was not in exist
Whether the penal consequences for an offense can be transferred to a successor company solely because it took over the business of the predecessor proprietary concern.
Whether an adjudication order imposing a penalty is sustainable when it is misdirected against a legal entity that was not the subject of the enquiry or charge.
Parties & counsel
- appellant
R.B. Khandelwal
- respondent
Securities & Exchange Board of India
- appellant
R.B.K. Share Broking Ltd
Coram
Case details
As recorded by the court registry
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