Judgements

Amgis Holdings (P.) Ltd. vs Securities And Exchange Board Of … on 20 April, 2004

Securities Appellate Tribunal
Amgis Holdings (P.) Ltd. vs Securities And Exchange Board Of … on 20 April, 2004
Equivalent citations: 2005 58 SCL 432 SAT
Bench: K Rajaratnam, B Samal, N Lakhanpal


ORDER

Kumar Rajaratnam, J. (Presiding Officer)

1. The appeal is taken up for final disposal with consent of both parties.

2. This matter can be disposed of without entering into the merits of the case since we hold that there has been a violation of principles of natural justice in not giving the appellant an opportunity for personal hearing as sought for.

3. It is however, submitted by the learned counsel for the respondent that a detailed reply was given by the appellant and an opportunity for personal hearing was also granted but the appellant did not take the opportunity by being present at the personal hearing.

4. Learned senior counsel for the appellant submitted that in reply to the show-cause notice dated 15-10-2003, a letter dated 16-12-2003 was sent seeking, an opportunity for personal hearing. An opportunity for personal hearing to show-cause notice was given by the respondent

5. However, the appellant sent a letter dated 23-2-2004 explaining his difficulty in attending the personal hearing on 23-2-2001. He also stated that he was offloaded at Singapore and had been flown to Hong Kong and will be reaching Mumbai and requested for one day adjournment. The letter dated 23-2-2004 reads as follows:

“We are in receipt of your letter No. IVD2/VSI/2644/2004., dated 6-2-2004, from Mr. P.K. Kurian he regarding hearing at 3.00 p.m. today.

To attend the said hearing, Mr. Deven Mehta who had gone to Singapore for an urgent meeting, and who was to reach Mumbai last night was not able to get the flight due to offloading on the flight. He has flown to Hong Kong and will be reaching Mumbai tonight.

We request you to kindly give us a hearing, any date from tomorrow at your convenient for the hearing.

We sincerely apologise for the inconvenience caused and assure you of our presence for the next hearing given by you.”

6. Another letter was sent on 24-2-2004 stating that the appellant wishes to avail of the personal hearing and sought for convenient date. Another letter was sent on 26-2-2004 seeking for an opportunity of personal hearing. It appears that none of these letters had been replied to. It is also common ground that the appellant was afforded an opportunity for personal hearing on 23-2-2004 which for various reasons did not ultimately take place. It appears to us that the appellant in three letters had sought for postponement of the personal hearing by one day. The impugned order states that an opportunity was given for personal hearing on 23-2-2004 and that the appellant had sought for adjournment and that it was not necessary to grant any further adjournment. The matter is dealt with at paragraph 4 of the impugned order.

7. When there is a clear finding that the adjournment was sought for it would not be open for the respondent to hold that the reasons stated in the letter was not convincing. The impugned order was passed on 1-4-2004.

8. It would have been in conformity with the principles of natural justice having acceded to the request earlier to have given an opportunity of hearing to state the appellant’s case.

9. Sine there has been a violation of the principles of natural justice, we have no alternative except to set aside the impugned order on the ground that no opportunity was given to the appellant to present his case. It is also clear that the impugned order was passed only on 1-4-2004. So there was plenty of time for the respondent to have heard the appellant and only one day’s adjournment was sought for, which could easily have been given to the appellant.

10. In that view of the matter, we set aside the impugned order without going into the question on merits and remand it to the respondent. The appellant undertakes to be present before the respondent on 24-4-2004 at 11 a.m. We direct the respondent to dispose of the matter as expeditiously as possible. The appellant is also directed to co-operate with the respondent and not to seek further adjournments. It is for the respondent to regulate the hearings.

11. We do not propose to say anything on the merits of the case. The appeal is disposed of accordingly. No order as to costs.