The capital markets regulator didn’t need SAT to hear appeals until such time a technical member is appointed by the federal government. The SAT bench was functioning with a presiding officer, judicial member and a technical member. The technical member, CKG Nair demitted workplace on March 31. Since then, the bench of the tribunal consisted of the presiding officer and a judicial member.
Sebi’s rivalry was that each bench should have not less than one technical member and for the reason that present bench are of Judicial members, the structure of the bench is flawed.
“Similar assertion is being made by Sebi while filing their replies in other appeals and, therefore, it has become imminent to decide this issue. Consequently, this Tribunal is now enjoined to rule its own jurisdiction,” SAT stated in its order on Monday.
The tribunal rejected the objection raised by Sebi.
“We are of the confirmed opinion that the functioning of the tribunal presently comprising of a Presiding Officer and a Judicial Member is not defective on account of non-availability of Technical Member and that the Bench constituting the Presiding Officer and Judicial member can proceed to hear and decide the appeals, etc which are filed before the SAT,” the tribunal stated in it order.
It additionally directed the registrar of the tribunal to ship a duplicate of the order to the Secretary, Ministry of Finance, Department of Economic Affairs, with a request to refill the vacancies on the earliest and and in addition to the secretary common of the Supreme Court of India with a request to place the order earlier than the Chief Justice of India and, if desired, to deal with the order as a PIL (public curiosity litigation) to resolve the problem on the judicial facet in order that the matter is resolved as soon as and for all from the best Court in India.
“This order settles the problem of structure of Tribunal quickly until it’s stayed by Supreme Court which for my part is unlikely,” stated Sumit Agrawal, Founder Regstreet Law Advisors and former SEBI Officer.