{"id":219170,"date":"2019-09-05T18:15:58","date_gmt":"2019-09-05T12:45:58","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=219170"},"modified":"2019-09-16T16:45:52","modified_gmt":"2019-09-16T11:15:52","slug":"bom-hc-sebi-committed-serious-error-in-rejecting-ndtvs-applications-for-condonation-of-delay","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/09\/05\/bom-hc-sebi-committed-serious-error-in-rejecting-ndtvs-applications-for-condonation-of-delay\/","title":{"rendered":"Bom HC | SEBI committed serious error in rejecting NDTV’s applications for condonation of delay"},"content":{"rendered":"

Bombay High Court: <\/strong>A Division Bench of Akil Kureshi and S.J. Kathawalla, JJ. addressed the petition filed by NDTV challenging orders passed by Securities Exchange Board of India (SEBI). Orders passed by SEBI pertained to the rejection of applications filed by NDTV for condonation of delay in filing settlement applications.<\/p>\n

Facts pertaining to the present case<\/strong><\/p>\n

SEBI had initiated adjudication proceedings against the petitioner. The \u2018first show-cause notice\u2019 <\/strong>dated 12-02-2015 alleged violation of Clause 36 of Listing Agreement on the ground that there was non-disclosure of a tax demand of Rs 450 Crores<\/strong> which was raised under an assessment order against the Company for the assessment year 2009-2010.<\/p>\n

04-03-2015 \u2013 Petitioner filed reply contending that he was under legal advice and bonafide belief that the tax demand was not required to be reported under Clause 36 of the Listing Agreement.<\/p>\n

04-06-2015 \u2013 SEBI passed order holding the petitioner liable for the violation of Clause 36 of Listing Agreement and imposed a penalty of Rs 25 lakhs under Section 23-A of the Securities Contracts (Regulation) Act, 1956.<\/p>\n

23-07-2015 \u2013 Petitioner filed an appeal against the above-stated order of SEBI before SAT, Mumbai.<\/p>\n

28-08-2015 \u2013 SEBI issued \u2018second show-cause notice\u2019<\/strong> against the company and its directors and key managerial personnel in which the allegations included non-disclosure of tax demand of Rs 450 Crores, delayed disclosure of certain sale of shares by KVL Narayan Rao, Group CEO and Executive Vice-Chairman and delayed disclosure by the petitioner under the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992.<\/p>\n

08-06-2016 \u2013 SEBI issued the ‘third show cause notice’<\/strong> alleging the petitioner for violation of certain provisions of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997.<\/p>\n

Contentions<\/strong><\/p>\n

Petitioner stated that there was no contravention of non-disclosure of tax demand which was the main subject matter of the first and second show-cause notices. In regard to the allegations in the third show cause notice, the petitioner stated that it could trace the proof of some of the disclosures but could not trace the proof of the rest. Under the circumstances, without conceding to the correctness of the allegations made, the petitioner took a decision to seek settlement of all three cases.<\/p>\n

21-03-2017 \u2013 Petitioner filed settlement application with respect to the first and second show-cause notices.<\/p>\n

24-07-2017 \u2013 In respect to the third show-cause notice, the settlement application was filed.<\/p>\n

15-05-2017 \u2013 Petitioner filed an application for condonation of delay in filing settlement application dated 21-03-2017. Further, it was stated that the settlement application was re-presented on 26-09-2017 confined to the second show-cause notice.<\/p>\n

Additionally to the above contentions, counsel for the petitioner stated that:<\/p>\n