Supreme Court Issues Notice in S.L.P. Cases, SEBI to Appoint Observer

The Supreme Court clarified that the order dated 3rd December, 2020, should be read as issuing notice in S.L.P.(Civil)Nos.14288-14291/2020. It granted permission to file special leave petitions in related cases, directed issuance of notice, and instructed filing of counter affidavits/replies. The Court emphasized that the December order was case-specific and not a precedent, addressing SEBI's concerns. SEBI was directed to appoint an observer for e-voting, with results to be presented before the Court. S.L.P.(Civil)Nos.14288-14291/2020 was designated as a lead case, with an interim order staying redemption payments until the next hearing in January 2021.

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Issues:
1. Direction for issue of notice in S.L.P.(Civil)Nos.14288-14291/2020.
2. Special leave petitions by SEBI and issuance of notice in other related cases.
3. Clarification on the order dated 3rd December, 2020 not being a precedent.
4. Appointment of an observer for e-voting of unit holders.
5. Treatment of S.L.P.(Civil)Nos.14288-14291/2020 as a lead case.
6. Continuation of interim order staying redemption payment to unit holders.
7. Listing of petitions for hearing in the 3rd week of January, 2021.

Detailed Analysis:
1. The Supreme Court clarified that the order dated 3rd December, 2020, which did not specifically record the direction for the issue of notice in S.L.P.(Civil)Nos.14288-14291/2020, should be read as an order issuing notice in these petitions. This clarification was made to ensure procedural correctness and proper notice in the mentioned cases.

2. The Court granted permission to file special leave petitions and directed the issuance of notice in S.L.P.(Civil)Nos.14734/2020, 14929/2020, 15008/2020, and S.L.P.(Civil)Diary Nos.26325/2020 and 26728/2020. It also instructed the filing of counter affidavits/replies by respondents within seven days and allowed service on unrepresented respondents through various modes, including e-mails.

3. Emphasizing that the order of 3rd December, 2020, was specific to the circumstances of the case and not to be considered a precedent, the Court addressed concerns raised by SEBI regarding potential misinterpretation of the order. It clarified that the order was issued to expedite the hearing and decision in the special leave petitions at hand.

4. SEBI was directed to appoint an observer for the e-voting of unit holders scheduled between 26th December to 29th December, 2020. The results of the e-voting were to be presented in a sealed cover along with the observer's report and the final Forensic Audit Report before the Court. The trustees were tasked with conducting the e-voting, while SEBI was responsible for appointing the observer.

5. S.L.P.(Civil)Nos.14288-14291/2020 was designated as a lead case, with counsels instructed to collaborate and submit a common compilation. An interim order from 3rd December, 2020, staying redemption payments to unit holders, was to remain in effect until the next hearing scheduled for the 3rd week of January, 2021.

6. The Court listed the petitions for a comprehensive hearing in January 2021, signifying the importance and complexity of the legal issues involved in the case. This scheduling decision aimed to ensure thorough consideration and resolution of the matters at hand.

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