Final Order 1

Order Details: Copy of Judgment
Pdf Text: Exhibit-22 : 1 : SEBI.Spl.No.443/2014
MHCC020198992014
IN THE SPECIAL COURT OF THE JUDGE UNDER THE SECURITIES
AND EXCHANGE BOARD OF INDIA ACT, 1992 AT BOMBAY
EXHIBIT 22
IN
SEBI SPECIAL CASE NO. 443 of 2014
Mr.Hemrajsinh Vaghela .. Applicant
(Org.Accused No.2)
V e r s u s
Securities and Exchange Board of India .. Complainant.
Ld. SPP Ms.Sabiha Ansari for SEBI.
Ld. Advocate Mr.Sumit Yadav for Accused no.2.
CORAM : HIS HONOUR SPECIAL JUDGE
SHRI. M.M.UMAR
SEBI SPECIAL COURT
(Court Room No. 22)
DATE : 4th March , 2020.
ORDER BELOW EXHIBIT 22
1. This is an application under Section 24A of SEBI Act, 1992, for
compounding the offence, moved by the accused. SEBI has filed the
reply at Exhibit 33. Read the application and reply. Heard.
2. The learned advocate for the accused has submitted that the
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Exhibit-22 : 2 : SEBI.Spl.No.443/2014
complainant SEBI has filed the Criminal complaint for the offence
punishable Section 11C(6) and 27 of SEBI Act. It is submitted that
without admitting the allegations the accused no.1 and 2 wants to
compound the offence to finish up the matter. Therefore, it is requested
necessary directions be given to the SEBI for compounding at a
reasonable amount.
3. Per contra, the learned SPP for SEBI has submitted that
considering the facts and circumstances of the case, material placed on
record against the accused, the SEBI has decided to compound the
offence subject to making of payment of Rs.29,27,500/- including legal
expenses, towards the compounding charges.
4. The learned advocate for the accused has submitted that the
accused is not in a position to pay the said amount and has requested
to pass the appropriate order.
5. I have duly considered above submissions of both the sides, so
also, I have gone carefully through the case record. There is no dispute
that once a criminal complaint is filed it can only be compounded in
accordance with law. It appears that the present complaint is filed on
27/3/2003 and the present application (Exhibit 22) was filed for
compounding on 7/3/2019. There is no dispute that SEBI as a
Regulator has an enabling power to settle a dispute during the
pendency of the proceeding either before the Securities Appellate
Tribunal or before a Court, but SEBI cannot be compelled to settle a
dispute. In the matter, since the SEBI has decided to compound the
offence on the payment of Rs.29,27,500/- including the legal expenses
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Exhibit-22 : 3 : SEBI.Spl.No.443/2014
but the accused is not ready to pay that much amount. Therefore, this
Court has no discretionary power to direct the SEBI to compound the
offence on any lesser amount. In the result, application needs to be
rejected. Hence, following order:
O R D E R
Compounding application Exhibit-22 is hereby rejected.
Date : 04.03.2020 (M.M.UMAR)
SEBI Special Judge
City Civil & Sessions Court,
Gr. Bombay.
Dictated on : 04.03.2020
Typed on : 04.03.2020
Signed by HHJ. : 05.03.2020
“CERTIFIED TO BE TRUE AND CORRECT COPY OF THE ORIGINAL
SIGNED JUDGMENT/ORDER”
UPLOAD DATE TIME NAME OF STENOGRAPHER
05.03.20 5.40 p.m. Mrs.Jyoti Mane
Name of the Judge HHJ Shri MM Umar (CR No.22)
Date of Pronouncement of
Judgment/Order.
04.03.20
Judgment/order signed by P.O on 05.03.20
Judgment/order uploaded on 05.03.20
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