Ridah Farms Pvt. Ltd. v. SEBI
Case brief
What is this about?
Sat dismissed the appeal as time-barred, holding that the appellant failed to demonstrate sufficient cause for a 260-day delay despite admitting non-operation in capital markets. The court rejected claims of confusion or subsequent prosecution threats as valid grounds for condonation of delay.
What did the court decide?
Appeal dismissed as time-barred due to failure to show sufficient cause for 260-day delay in filing the appeal.
BEFORE THE SECURITIES APPELLATE TRIBUNAL MUMBAI
Appeal No.26/2002 And Application No.16/2002
In the matter of
Ridah Farms Pvt. Ltd. Appellant/Applicant Vs. Securities and Exchange Board of India Respondent
Appearance Shri H. Karthik Seshadri Advocate for Appellant/Applicant Shri Praveen Trivedi Asst. Legal Adviser, SEBI for Respondent
(Appeal arising out of the order dated 2.7.2001 made by the Chairman, Securities and Exchange Board of India)
ORDER
The present appeal is directed against the order dated 2.7.2001 made by the Chairman, Securities and Exchange Board of India. This is a common order directed to 490 entities. The Appellant is one among them. Core portion of the order is as under:
“DIRECTIONS UNDER SECTION 11 B OF THE SEBI ACT 1992 READ WITH REGULATIONS 65, 73 & 74 OF SEBI (COLLECTIVE INVESTMENT SCHEMES) REGULATIONS, 1999 ISSUED TO THE ENTITIES WHOSE NAMES ARE MENTIONED HEREINBELOW:-
Vide Order dated December 7, 2000, directions under Section 11B of the SEBI Act, 1992 read with Regulations 65 & 73 Of SEBI (Collective Investment Schemes) Regulations, 1999 were issued to you as you, having failed to make an application for grant of registration, had failed to wind up your existing collective investment schemes and make repayments to your investors in accordance with the provisions of the SEBI (Collective Investment Schemes) Regulations, 1999. As per the said Order, you were directed to refund the money collected under the scheme(s) with returns which is due to the investors as per the terms of the offer within a period of one month from the date of the said Order.
Issues for consideration
3 issues framed by the court
Whether sufficient cause was shown to condone a 260-day delay in filing an appeal against a Securities and Exchange Board of India debarment order
Whether an appellant can challenge the applicability of a broad order issued to 490 entities as a valid excuse for delay in filing appeal
Whether substantial compliance with regulations excuses lateness in filing an appeal within the prescribed period
Parties & counsel
- appellant
Ridah Farms Pvt. Ltd.
- respondent
Securities and Exchange Board of India
Coram
C. Achutan
Case details
As recorded by the court registry
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