sebi:Order/SRP/AE/2019-20/2859

SEBI · SEBI · 2017-07-13 · Satya Ranjan Prasad, Adjudicating Officer

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

abated

Provisions invoked

• s. 15
• s. 15H

Regulations

• Reg. 3(a)

Parties

• Late Shri Nathu Lal Sharma

Holding

The adjudication proceedings initiated against Late Shri Nathu Lal Sharma vide SCN dated February 12, 2018 were abated without going into the merits and no penalty was imposed following his death on September 23, 2017.

Full text

Adjudication Order against Late Shri Nathu Lal Sharma in the matter of Sulabh Engineers & Services Limited Page 2 of 3 with each other. Based on the findings of the investigations, a group of connected entities, which includes Shri Nathu Lal Sharma (hereinafter referred to as ‘Noticee’), were alleged to have manipulated the price of the scrip, created false and misleading appearance of trading in the securities market and also carried out an act/ practice which operated as a fraud or deceit in the market. Accordingly, SEBI initiated Adjudication Proceedings against the Noticee for alleged violation of Regulations 3(a),(b),(c),(d),4(1),4(2)(a),(b) and (e) of PFUTP Regulations, 2003

Adjudication Order against Late Shri Nathu Lal Sharma in the matter of Sulabh Engineers & Services Limited Page 3 of 3 6. In this regard, I note that the Hon’ble Supreme Court in its 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, wherein Adjudication Proceedings against Late N. Mahalingam were abated. In the present case, I note from the copy of the Death Certificate dated October 23, 2017 issued by the Sub-Registrar, Municipal Corporation, Chomu, that the Noticee had passed away on September 23, 2017.

APPOINTMENT OF ADJUDICATING OFFICER 3. SEBI appointed Ms. Anita Kenkare, General Manager, as Adjudicating Officer (AO) vide communique dated July 13, 2017 under Section 15-I of the SEBI Act, 1992 read with Rule 3 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Adjudication Rules’) to inquire into and adjudge the violations alleged to have been committed by the Noticee. Subsequently, Shri Biju S was appointed as the Adjudicating Officer in the matter in the place of Ms. Anita Kenkare. Pursuant to the transfer of Shri Biju S, the undersigned was appointed as the AO in the matter vide order dated July 06, 2018.

Source: SecMarx — sebi:Order/SRP/AE/2019-20/2859. 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.