Dr. Jugal Kishore Satapathy vs Sebi on 18 January, 2018

Securities Appellate Tribunal

Dr. Jugal Kishore Satapathy vs Sebi on 18 January, 2018

     BEFORE THE       SECURITIES APPELLATE TRIBUNAL
                             MUMBAI

                                             Date of Decision : 18.01.2018

                                    Misc. Application No. 55 of 2017
                                    And
                                    Appeal No. 61 of 2017

Dr. Jugal Kishore Satapathy
Plot No. A/7, Phase II,
Krishna Garden Complex,
Barabari,                                                  ...Appellant
Bhuvaneshwar - 30.

Versus
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1. Securities and Exchange Board of India,
   SEBI Bhavan, Plot No. C-4A, G-Block,
   Bandra-Kurla Complex, Bandra (East),
   Mumbai - 400 051.

2. Micro Finance Ltd.
   Annpurna House, Rasulgarh,
   Bhuvaneshwar - 751001.

3. Mr. Durga Prasad Misra
   Annpurna House, Rasulgarh,
   Bhuvaneshwar - 751001.

4. Mr. Ashok Kumar Patnaik
   Annpurna House, Rasulgarh,
   Bhuvaneshwar - 751001.

5. Mr. Baikuntha Nath Patnaik
   Annpurna House, Rasulgarh,
   Bhuvaneshwar - 751001.

6. Ms. Padmabati Patnaik
   Annpurna House, Rasulgarh,
   Bhuvaneshwar - 751001.

7. Ms. Shantilata Patnaik
   Annpurna House, Rasulgarh,
   Bhuvaneshwar - 751001.

8. Ms. Sashi Patnaik
   Annpurna House, Rasulgarh,
   Bhuvaneshwar - 751001.

9. Mr. Haricharan Jena
   Annpurna House, Rasulgarh,
   Bhuvaneshwar - 751001.

10. Mr. Dharmananda Swain
    Annpurna House, Rasulgarh,
    Bhuvaneshwar - 751001.
                                       2



11. Mr. Bijoy Kumar Rautray
    Annpurna House, Rasulgarh,
    Bhuvaneshwar - 751001.                                   ...Respondents


Ms. Kainaz Irani, Advocate i/b M/s. Mohanty & Associates for the
Appellant.

Mr. Gaurav Joshi, Senior Advocate with Mr. Chirag Bhavsar, Advocate i/b
MDP & Partners for the Respondent.



CORAM : Justice J.P. Devadhar, Presiding Officer

Jog Singh, Member
Dr. C.K.G. Nair, Member

Per : Justice J.P. Devadhar (Oral)

Misc. Application No. 55 of 2017:-

1. By this Miscellaneous Application appellant seeks waiver of court

fees payable on the present appeal.

2. By our order dated February 6, 2017 we had permitted the appellant

to withdraw Appeal No. 475 of 2016 with liberty to file fresh appeal within

a period of two weeks from that day. Since the present appeal is filed

pursuant to the directions given by our aforesaid order dated February 6,

2017, registry is directed to adjust the court fees paid on Appeal No. 475 of

2016 towards the court fees payable on the present appeal.

3. Miscellaneous Application is disposed of accordingly with no order

as to costs.

Appeal No. 61 of 2017:-

1. This appeal is filed to challenge the order passed by the Whole Time

Member (‘WTM’ for short) of Securities and Exchange Board of India

(‘SEBI’ for short) on October 27, 2016. By the said order Micro Finance

Ltd. and its promoters and directors including the appellant are, inter alia,
3

directed jointly and severally to refund the monies collected through the

issuance of Cumulative Convertible Preference Shares to the allottees with

interest at the rate of 15% per annum from the date of receipt of money till

the date of such refund.

2. Basic grievance of the appellant is that the impugned order is passed

without giving an opportunity of personal hearing to the appellant.

3. Learned Counsel for SEBI fairly states that in the present case no

document is available on record to show that the notice of hearing was

personally served on the appellant. However, counsel for SEBI submitted

that by a public notice the date of personal hearing was intimated to the

appellant.

4. Since the notice of hearing was not personally served on the

appellant, in our opinion, it would be just and proper to set aside the

impugned order qua the appellant and direct SEBI to pass fresh order after

hearing the appellant.

5. Accordingly, without going in to the merits of the case, we quash the

impugned order qua the appellant and direct SEBI to pass fresh order after

giving an opportunity of hearing to the appellant.

6. Appeal is disposed of in the aforesaid terms with no order as to costs.

Sd/-

Justice J.P. Devadhar
Presiding Officer

Sd/-

Jog Singh
Member

Sd/-

Dr. C.K.G. Nair
Member
18.01.2018
Prepared and compared by: msb

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