2015 (4) TMI 1326

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....R. NO.II68 of 2011 for the offence under Sections 23(1) of the Securities Contract (Regulation) Act, 1956 and under Section 15H(A) of the Securities and Exchange Board of India Act, 1992 and the chargesheet filed thereupon (Annexure "A") and the impugned order dated 19.09.2014 passed by the learned 3rd Additional Sessions Judge at Mahesana in application below Exhibit 4. (Annexure" B"). (B) Pending admission, hearing and final disposal of this petition Your Lordships may be pleased to stay the further proceedings pursuant to the FIR being C.R. NO.II68 of 2011, registered at Mahesana "B" Division Police Station on 25.05.2011 for the offence under Sections 23(1) of the Securities Contract (Regulation) Act, 1956 and under Section 15H(A) of ....

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....Act, 1956 and Section 26 of the SEBI Act, 1992. My attention has been drawn to Section 26 of the Securities Contracts (Regulation) Act, 1956, which is with regard to cognizance of offences by courts. Section 26 reads thus : "26. Cognizance of offences by courts.(1) No court shall take cognizance of any offence punishable under this Act or any rules or regulations or byelaws made thereunder, save on a complaint made by the Central Government or State Government or the Securities and Exchange Board of India or a recognized stock exchange or by any person. (2) No court inferior to that of a Court of Session shall try any offence punishable under this Act." The plain reading of Section 26 of the Act, 1956 would suggest that no court....

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....(2) No court inferior to that of a court of session shall try any offence punishable under this Act." The law in this regard is well-settled. Although the police has the power to investigate the offence alleged against the applicant and chargesheet has been filed, the Court will not be able to take cognizance in view of the specific bar. The investigation carried out by the police can be used for the purpose of filing a complaint in writing before the appropriate court. To be precise, whatever materials have been collected by the Investigating Officer could be used by the authority for the purpose of filing a complaint before the competent court. Having heard Mr. Gadhavi, the learned advocate appearing on behalf of the applicants and ....