Manu Finlease Limited
Case brief
What is this about?
The SAT dismissed appeals against SEBI's debarment order of five years preventing appellants (company and directors) from accessing the capital market. The tribunal held the order was preventive and remedial under Section 11B, distinct from penalty, and not barred by prior acquittal on different charges.
What did the court decide?
Impugned order of SEBI debarring appellants from accessing the capital market for five years was upheld.
BEFORE THE SECURITIES APPELLATE TRIBUNAL
MUMBAI
In the matter of:
Appeal No.15/2003
Manu Finlease Ltd. Appellant
Vs.
Securities & Exchange Board of India Respondent
Appeal No.16/2003
Anil Kumar Jindal Appellant
Vs.
Securities & Exchange Board of India Respondent
Appeal No.17/2003
J.K. Garg Appellant
Issues for consideration
3 issues framed by the court
Whether SEBI has the power under section 11B of the SEBI Act to issue a direction debarring appellants from accessing the capital market despite a prior acquittal under a different provision.
Whether the direction under section 11B to prohibit access to the capital market is punitive and liable to be struck down as a penalty, or if it is a valid preventive and remedial measure.
Whether the impeding direction can be issued against the company and its directors who acted in their capacity as promoters/directors.
Parties & counsel
- appellant
Manu Finlease Ltd.
- appellant
Anil Kumar Jindal
- appellant
J.K. Garg
- appellant
P.K. Kapoor
- appellant
Ritu Garg
- respondent
Case details
As recorded by the court registry
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