Case Law Analysis
|Securities Appellate Tribunal
13-Year Delay in Serving SEBI Order Violates Natural Justice | Ex-Parte Penalty Set Aside for Abuse of Process : SAT
The Securities Appellate Tribunal invalidated SEBI’s 2010 ex-parte penalty after a 13-year failure to serve the show-cause notice, ruling that prolonged inaction amounts to abuse of process and denies the accused a meaningful hearing. This sets a critical precedent for regulatory bodies: indefinite delays in service nullify enforcement actions, regardless of alleged misconduct, reinforcing that procedural fairness is non-negotiable in securities law.