Ms. Harsha Ishvarbhai Solanki & Ors. vs Securities And Exchange Board Of India

Per : Justice P. S. Dinesh Kumar, Presiding Officer (Oral)

This appeal is directed against order dated February 12, 2026 passed by AO^{11.Adjudicating Officer}, SEBI^{22.Securities & Exchange Board of India}, imposing penalty on the appellants for violation of Securities laws.

We have heard Mr. Kunal Katariya, learned advocate for the appellants and Mr. Manish Chhangani, learned advocate for the respondent.

For the reasons stated therein, Misc. Application No. 1147 of 2026 for condonation of delay of 192 days in filing this appeal is allowed and disposed of.

Admitted position is that the AO, SEBI has initiated certain proceedings against the appellants and it has culminated in an ex parte order, impugned in this appeal.

Mr. Katariya submitted that though the show cause notice was served upon the appellants, the hearing notice was not served and it is contrary to the authority in Bajranglal B. Maloo HUF vs. SEBI^{33.Appeal No. 564 of 2021 decided on August 31, 2021}.

Mr. Katariya’s contention that hearing notice was not served and the position of law as held in Bajranglal B. Maloo (supra) is not disputed by the learned advocate for the respondent.

We have perused Bajranglal B. Maloo and note that this Tribunal has ruled in that case that an opportunity of hearing before passing the impugned order is mandatory under Rule 4(3) of the Rules^{44.SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995}.

In the circumstances, the order dated February 12, 2026 is unsustainable and accordingly set aside. Matter is remitted to the AO for fresh consideration in accordance with law.

Appellants are granted four weeks from today to file their reply. They shall appear before the AO on December 10, 2026 without waiting for any notice from the SEBI.

Appeal stands disposed of in above terms. Pending interlocutory application(s), if any, stand disposed of.

No costs.