2025 (3) TMI 854 - HC - SEBI

Petition Dismissed: Court Upholds Obligation to Pursue Remedy Under Section 15Z of SEBI Act, No Writ Jurisdiction.

Bikash Kumar Jain Versus Securities And Exchange Board of India & Anr.

Bikash Kumar Jain Versus Securities And Exchange Board of India & Anr. - 2025:DHC:1643 ISSUES PRESENTED and CONSIDEREDThe core legal questions considered in this judgment are:1. Whether the service of the order upon the counsel of the appellant can be considered as valid service in the eyes of law.2. Whether the High Court can entertain a writ petition under Articles 226 and 227 of the Constitution of India when an alternate statutory remedy is available under Section 15Z of the Securities and Exchange Board of India Act, 1992 (SEBI Act).3. Whether the Securities Appellate Tribunal's refusal to condone the delay in filing the appeal was justified and if such a decision can be challenged under the writ jurisdiction of the High Court.ISSUE-WISE DETAILED ANALYSIS1. Validity of Service upon CounselRelevant Legal Framework and Precedents: The legal framework involves the interpretation of what constitutes valid service of an order. The Tribunal considered the service of the order via email to the appellant's counsel as valid, based on the details provided by the appellant himself.Court's Interpretation and Reasoning: The Court noted that the question of whether service upon counsel is valid constitutes a question of law. Therefore, the appellant could have filed an appeal to the Supreme Court under Section 15Z of the SEBI Act, which allows for appeals on questions of law.Application of Law to Facts: The Court found that the appellant's contention regarding the invalidity of service could itself be a question of law, thus making the case eligible for appeal under the SEBI Act.2. Availability of Alternate RemedyRelevant Legal Framework and Precedents: Article 226 of the Constitution provides the High Court with the power to issue certain writs. However, the Court referenced the precedent set in M/s Radha Krishan Industries Vs. State of HP & Ors., which limits the High Court's jurisdiction when an alternate statutory remedy is available, except in exceptional circumstances.Court's Interpretation and Reasoning: The Court emphasized that when a statute prescribes a specific remedy, it should be pursued unless exceptional situations arise, such as violation of fundamental rights or principles of natural justice, or when an order is wholly without jurisdiction.Conclusions: The Court concluded that no exceptional situation existed to justify bypassing the statutory remedy available under Section 15Z of the SEBI Act.3. Condonation of DelayRelevant Legal Framework and Precedents: The Tribunal's decision to refuse condonation of delay was based on its discretionary power. The Court referred to the principles laid out in Puri Investments Versus Young Friends and Co. and Others regarding the limited scope of interference by a supervisory court under Article 227.Court's Interpretation and Reasoning: The Court determined that the Tribunal's decision did not exhibit any illegality or perversity that would warrant interference. The exercise of discretion by the Tribunal was found to be within legal bounds.Conclusions: The Court held that the refusal to condone the delay was justified and did not constitute grounds for interference under the writ jurisdiction.SIGNIFICANT HOLDINGSThe Court established several core principles in its judgment:1. The validity of service upon counsel can constitute a question of law, making the case eligible for appeal under Section 15Z of the SEBI Act.2. The High Court's jurisdiction under Articles 226 and 227 is limited when an alternate statutory remedy is available, and no exceptional circumstances exist to justify bypassing such remedies.3. The discretionary power exercised by the Tribunal in refusing to condone the delay does not warrant interference unless it is shown to be perverse or illegal.Final Determinations:The Court dismissed the writ petition, emphasizing that the petitioner should have pursued the statutory remedy available under Section 15Z of the SEBI Act, particularly when a question of law was involved. The Court found no merit or substance in the petition to justify its intervention under the writ jurisdiction.