MAHENDER SINGH Vs. HIGH COURT OF DELHI

JUDGEMENT

(1.) AGAINST the petitioners in all these petitions the Securities and Exchange board of India (?sebi?, for short), which is a statutory body constituted under the SEBI Act, 1992 (hereinafter referred to as ?the Act?), has filed complaints under Section 24 (1) and Section 27 of the Act. These complaints relate to the alleged offence committed by the petitioners, under the aforesaid provisions of the Act, prior to 29. 10. 2002. As per the said provisions prevalent at that time, the offences for which the petitioners are being prosecuted contained a maximum term of one year?s imprisonment. The complaints filed are in the nature of summons cases and having regard to the aforesaid maximum imprisonment which could be given to the accused held guilty of the offence, these are triable by the Court of Magistrate. Thus, the complaints were filed before the Magistrate who had taken cognizance thereof.

(2.) THE provisions of the Act were amended with effect from 29. 10. 2002. These very offences, because of the amendment, are now punishable with 10 years imprisonment and, thus, triable by a Sessions Court. There is no dispute that insofar as substantive provision relating to the sentence is concerned, it has prospective operation and it applies to those offences committed after 29. 10. 2002. However, we are concerned with the procedural aspect and the question which arises for determination is as to whether the pending complaints would now be triable by the Court of Sessions. This issue has arisen in the following backdrop :

(3.) AFTER the amendment in the SEBI Act by the SEBI (Amendment) Act, 2002 (hereinafter referred to as the ?amendment Act?), as mentioned above, the registrar (Admn. /judl.) of the High Court of Delhi addressed letter dated 1. 12. 2004 to the District and Sessions Judge, Delhi informing that the Chief justice and Judges of this Court had been pleased to order that the SEBI cases be allocated to the Court of Ms. Asha Menon, Addl. Sessions Judge, Tis Hazari, delhi in addition to her work. On receiving the communication, the then District and Sessions Judge, Delhi passed orders dated 4. 12. 2004 directing that all SEBI cases pending in the Court of Ms. Madhu Jain, Addl. Chief Metropolitan magistrate, Delhi stood withdrawn and transferred those cases to the Court of the Addl. Sessions Judge. Thereafter, a clarificatory order dated 12. 1. 2005 was sent by the Registrar General of the Delhi High Court to the District and sessions Judge, Delhi informing that the cases filed prior to the date of the above amendment were not required to be withdrawn from the Court of the magistrate and were not to be transferred to the Court of Addl. Sessions Judge, but only those cases which are filed after coming into force the Amendment Act, i. e. the cases which were filed after 29. 10. 2002, had to be allocated to the court of Ms. Asha Menon, Addl. Sessions Judge.