{"id":213424,"date":"2019-04-09T11:15:45","date_gmt":"2019-04-09T05:45:45","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=213424"},"modified":"2019-04-18T16:09:56","modified_gmt":"2019-04-18T10:39:56","slug":"del-hc-object-of-sebi-act-to-be-kept-in-mind-while-discharging-an-accused-application-under-s-24-a-declined","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/04\/09\/del-hc-object-of-sebi-act-to-be-kept-in-mind-while-discharging-an-accused-application-under-s-24-a-declined\/","title":{"rendered":"Del HC | Object of SEBI Act to be kept in mind while discharging an accused; application under S. 24-A declined"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Delhi High Court:\u00a0<\/strong>Sunil Gaur, J., declined an application filed under Section 24-A of the Securities and Exchange Board of India Act, 1992, for compounding offence, without commenting on merits of the case.<\/p>\n<p style=\"text-align: justify;\">The petitioner was an undertrial in a case registered for violation of provisions of SEBI Act. The trial court had rejected the petitioner&#8217;s application under Section 24-A relying on the Supreme Court decision in <em>JIK Industries Ltd. v. Amarlal V. Jumani<\/em>, <a href=\"http:\/\/scconline.com\/DocumentLink\/O976yeZY\">(2012) 3 SCC 255.<\/a><\/p>\n<p style=\"text-align: justify;\">Jagdeep Singh Bakshi and Abhishek Mohan Sinha, Advocates for the petitioner relied on <em>Meters and<\/em> <em>Instruments (P) Ltd. v. Kanchan Mehta,<\/em> <a href=\"http:\/\/scconline.com\/DocumentLink\/ZgG6hm4O\">(2018) 1 SCC 560<\/a> to submit that the respondent&#8217;s consent to permit compounding of the offence was not required. Per contra, Sanjay Mann and Simran, Advocates representing SEBI relied on Bombay High Court decision in <em>N.H.Securities Ltd. v. SEBI<\/em>, <a href=\"http:\/\/scconline.com\/DocumentLink\/saG31163\">2018 SCC OnLine Bom 4040<\/a> to submit that object of SEBI Act would be lost if compounding was allowed.<\/p>\n<p style=\"text-align: justify;\">The High Court noted that the petitioner had filed the compounding application way back in 2013 which remained pending, but now, the proceedings before the trial court had reached the final arguments stage. The Court said:\u00a0<strong>&#8220;The object of the SEBI Act has to be kept in mind. A stable and orderly functioning of the securities market has to be ensured. It will not be in the interest of justice to discharge the accused at the final stage of the proceedings by allowing the application for compounding without the consent of SEBI Act as it will defeat the objective of the SEBI Act. Though the Adjudicating Officer has found that the alleged violation committed by the petitioner has not resulted in any loss to the investors, but this by itself would not justify discharge of accused at the fag end of trial.&#8221;<\/strong><\/p>\n<p style=\"text-align: justify;\">Considering the cited cases, the High Court found no justification for allowing petitioner&#8217;s application under Section 24-A. [Prakash Gupta v. SEBI, <a href=\"http:\/\/scconline.com\/DocumentLink\/2e0NM421\"><b>2019 SCC OnLine Del 7930<\/b><\/a>, Order dated 01-04-2019]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Delhi High Court:\u00a0Sunil Gaur, J., declined an application filed under Section 24-A of the Securities and Exchange Board of India Act, 1992, <\/p>\n","protected":false},"author":8808,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[34842,34840,34841,34839],"class_list":["post-213424","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-highcourts","tag-adjudicating-officer","tag-compounding","tag-discharging-accused","tag-section-24-a-sebi-act"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Del HC | Object of SEBI Act to be kept in mind while discharging an accused; 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Chandrachud and M.R. Shah, JJ. declared that\u00a0 SEBI\u2019s consent is not mandatory for compounding of offence under Section 24-A of the Securities and Exchange Board of India Act, 1992. However, the view of the Securities and Exchange Board of India (\"SEBI\") as\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/07\/MicrosoftTeams-image-7-1.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/07\/MicrosoftTeams-image-7-1.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/07\/MicrosoftTeams-image-7-1.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/07\/MicrosoftTeams-image-7-1.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/07\/MicrosoftTeams-image-7-1.png?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":205490,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/11\/19\/consent-of-complainant-required-for-compounding-of-offence-under-section-138-of-negotiable-instruments-act-1881\/","url_meta":{"origin":213424,"position":1},"title":"Consent of complainant required for compounding of offence under Section 138 of Negotiable Instruments Act, 1881","author":"Bhumika Indulia","date":"November 19, 2018","format":false,"excerpt":"Punjab and Haryana High Court: A Single Judge Bench of Rajbir Sehrawat, J., dismissed the three petitions which were addressed together involving similar facts but involvement of different cheques and different complaints\/proceedings thereunder. Facts of the case were that petitioner was required to pay certain amount as a result of\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":150774,"url":"https:\/\/www.scconline.com\/blog\/post\/2017\/08\/21\/2002-amendment-to-section-26-of-sebi-act-is-retrospective-in-nature-all-offences-committed-before-29-10-2002-will-stand-vested-in-the-new-forum\/","url_meta":{"origin":213424,"position":2},"title":"2002 Amendment to Section 26 of SEBI Act is retrospective in nature; All offences committed before 29.10.2002 will stand vested in the new forum","author":"Prachi Bhardwaj","date":"August 21, 2017","format":false,"excerpt":"Supreme Court: In the case where it was argued that for offences allegedly committed under Section 26(2) of the Securities and Exchange Board of India Act, 1992 before 29.10.2002 (whether or not, taken up for trial before 29.10.2002) the trial was to be conducted by the concerned Metropolitan Magistrate (or,\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":270869,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/07\/29\/whether-the-delay-in-filing-complaints-against-unregistered-sub-brokers-can-be-condoned-sebi-special-court-answers\/","url_meta":{"origin":213424,"position":3},"title":"Whether the delay in filing complaints against unregistered sub-brokers, can be condoned? 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It was held that, in view\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"SEBI","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-111-4.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-111-4.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-111-4.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-111-4.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/03\/MicrosoftTeams-image-111-4.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":217133,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/07\/22\/bom-hc-magistrate-is-empowered-to-make-order-under-s-143-a-of-ni-act-even-when-plea-of-not-guilty-recorded-by-advocate-and-not-by-accused-himself\/","url_meta":{"origin":213424,"position":4},"title":"Bom HC | Magistrate is empowered to make order under S. 143-A of NI Act even when plea of not guilty recorded by Advocate and not by accused himself","author":"Bhumika Indulia","date":"July 22, 2019","format":false,"excerpt":"Bombay High Court:\u00a0S.S. Shinde, J. dismissed a writ petition filed against the order of the Magistrate who had directed the petitioner to deposit 20% of the amount of the subject cheques while allowing his application of exemption from appearance on the condition that his Advocate record the plea. 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