sebi:Order/GR/RK/2021-22/11456

SEBI · SEBI · 2020-09-28 · Shri G Ramar, Adjudicating Officer

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Facts / Headnote

Adjudication Proceedings abated without going into the merits of the case; no penalty imposed

Provisions invoked

• s. 15
• s. 19
• s. 15H

Regulations

• Reg. 3(a)
• Reg. 12A(a)

Parties

• Late Shri Ashok Hiralal Shah

Holding

The Adjudication Proceedings initiated against the deceased Noticee, Late Shri Ashok Hiralal Shah, are abated without going into the merits of the case, and no penalty is imposed.

Full text

Adjudication order in respect of Late Shri Ashok Hiralal Shah Page 2 of 3 directly/indirectly, which was subsequently transferred to GLLFL for the purchase of shares allotted to the said allottees on preferential basis. Thus, it was alleged that the act of these entities including the Noticee was in violation of Regulations 12A(a), (b), (c) of the SEBI Act, 1992 read with Regulation 3(a), (b), (c), (d) and 4(1) of PFUTP Regulations.

Adjudication order in respect of Late Shri Ashok Hiralal Shah Page 3 of 3 7. In this regard, I note that the Hon’ble Supreme Court’s Order in the case of Girija Nandini vs. Bijendra Narain Choudhury (AIR 1967 SC 2110) has stated that in case of personal actions, i.e. the actions where the relief sought is personal to the deceased, the right to sue will not survive to or against the representatives, and in such cases the maxim “actio personalis moritur cum persona” (personal action dies with the death of the person) would apply, and the said view was subsequently followed by SEBI in the case of M/s. Sakthi Finance Limited (Order dated September 14, 2016), wherein Adjudication Proceedings against Late N. Mahalingam were abated. In the present case, I note from the copy of the Death Certificate dated August 14, 2020, issued by Department of Health and Family Welfare, Gujarat Government, that the Noticee had passed away on August 09, 2020.

APPOINTMENT OF ADJUDICATING OFFICER 4. The undersigned was appointed as Adjudicating Officer (“AO”) vide communique dated September 28, 2020, under section 15-I of SEBI Act, 1992 and rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 (hereinafter referred to as ‘Rules’) read with section 19 of SEBI Act, 1992, to inquire into and adjudge under Section 15HA of the SEBI Act, 1992 the alleged violations of Regulations 12A(a), (b), (c) of the SEBI Act, 1992 read with Regulation 3(a), (b), (c), (d) and 4(1) of PFUTP Regulations by the Noticee.

Source: SecMarx — sebi:Order/GR/RK/2021-22/11456. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.