New Delhi (The Hawk): On a petition by Reliance Industries (RIL), alleging non-compliance with the court's August 5 order, which allowed the market regulator to be directed to provide access to certain documents to the company, the Supreme Court issued a contempt notice to the Securities and Exchange Board of India (SEBI).
The bench was addressed by judges MR Shah and MM Sundresh with the following statement: "The accused has been given notice to appear on December 2, 2022. Abhishek Singh served as the accused's attorney.
The defendant (SEBI) was given the go-ahead to furnish copies of the documents despite the Supreme Court's direction from August 5, according to senior attorney Harish N. Salve, who spoke in court on behalf of RIL. However, nothing similar has yet been delivered.
The Defendant's preferred request for review is still pending in this court, according to senior attorney and former Attorney General of India KK Venugopal, who spoke on behalf of SEBI. As a result, no further orders will be made in this case.
"We have passed the subsequent order passed by this court in the review petition on October 12, 2022," the judge wrote in his order. The pending review petition cannot be compared to the pending appeal, writ petition, or both. On appeal, this court has the final say. A defendant may not grant a stay on his or her own without adhering to the court's orders just because an application for a stay is being considered.
The state of J&K vs. Mohd. Yaqoob Khan and others initiated the contempt case against an ex parte order passed by an ex parte judge pending a written motion, according to the bench, and that is the item to watch.
Therefore, this court decides that a stay motion cannot be heard, decided upon, or otherwise resolved when contempt proceedings cannot be started. The Supreme Court ruled that the aforementioned decision in this case did not in any way benefit the defendant. The subject will be heard again by the bench on December 2.
The company has asked SEBI for three papers that it claims can shield it and its promoters from legal action over allegedly unauthorised purchases of its stock between 1994 and 2000.
On August 5, the judges, under the direction of the outgoing Chief Justice NV Ramana, stated: "SEBI's conduct, particularly its failure to provide records, also raises questions about openness and fair trials. Transparency prevents the propagation of bias and favouritism. Transparency is the opposite of opacity.
According to the Supreme Court, market regulators must exhibit fairness and submit the paperwork requested by the RIL. When pursuing litigation or other actions against parties, SEBI must behave fairly.
Due to SEBI's failure to provide three papers, including two legal opinions from a former Supreme Court Justice BN, RIL filed a suit for contempt of court. Violations are examined in the report by Srikrishna and former ICAI chairman Y.H. Malegam.
The company also sent a letter to market regulators, claiming that SEBI cannot continue to refuse the production of the records. If the documents are not supplied by August 18, the company will conclude that SEBI does not intend to follow the Supreme Court's ruling.
S. Gurumurthy, a chartered accountant, submitted a complaint with SEBI in 2002 alleging violations by RIL, its affiliates, and directors/promoters Mukesh and Nita Ambani, Anil and Tina Ambani, and 98 others.
Two senior placements of non-convertible bonds in 1994 were mentioned in the complaint. By financing the purchase of its shares, RIL and Reliance Petroleum, according to SEBI, violated sections 77 and 77A of the Companies Act of 1956.
(Inputs from Agencies)
