Balushri Gupta vs Securities And Exchange Board Of India

Tarun Agarwala, Presiding Officer

We have heard the learned counsel for the appellant. The present appeal has been filed against the order dated August 6, 2021 passed by the Whole Time Member (‘WTM’ for short) of the Securities and Exchange Board of India (‘SEBI’ for short) imposing a penalty of Rs. 3 lakh. In addition, the appellant was debarred for a period of six months.

There is a delay of 700 days in the filing of the appeal. The appellant has accordingly filed an application for condoning the delay. The ground urged is, that the appellant had resigned as an independent director on September 28, 2018 prior to the issuance of the show cause notice and therefore the appellant had no association with the Company. Further, only when the appellant’s bank account was frozen pursuant to the order in October 2022 that the appellant approached the bank and came to know that some order was passed by SEBI and thereafter the present appeal has been filed on October 31, 2023.

It has taken almost a year for the appellant from the date of freezing of the account to approach this Tribunal and filing the appeal. No explanation has been given as to why the appellant could not approach the Tribunal earlier. Further nothing has been indicated as to why the appellant could not approach the Tribunal after the impugned order was passed on August 6, 2021. The application for condonation of delay makes it apparently clear that the appellant was served with the show cause notice as well as of the impugned order but the appellant failed to appear and contest the matter before the authority concerned.

Considering the aforesaid, we are of the opinion that there is an inordinate delay in the filing of the appeal. No sufficient cause has been shown for condoning the delay. Consequently, the application for condonation of delay is rejected on the ground of undue delay, as a result of which, appeal is also dismissed with no order as to costs.