Establishment, Jurisdiction, Authority and Procedure of SAT’S
Chapter VIB - Establishment, Jurisdiction, Authority and Procedure of SAT’s
Section 15K. Establishment of Securities Appellate Tribunals
15K(1).
The Central Government shall, by notification, establish a Tribunal.
Such Tribunal shall be known as the Securities Appellate Tribunal.
The Tribunal shall exercise jurisdiction, powers and authority:
Conferred on it by or under this Act.
Conferred on it by or under any other law for the time being in force.
15K(2).
The Central Government shall specify, in the notification referred to in 15K(1):
The matters in relation to which the Securities Appellate Tribunal may exercise jurisdiction.
The places in relation to which the Securities Appellate Tribunal may exercise jurisdiction.
Section 15L. Composition of Securities Appellate Tribunal.
15L(1).
The Securities Appellate Tribunal shall consist of:
A Presiding Officer, and such number of Judicial Members, and Technical Members,
The number of members shall be determined by the Central Government by notification.
The members so appointed shall exercise the powers, and discharge the functions,
Such powers and functions shall be those:
Conferred on it by or under this Act.
Conferred on it by or under any other law for the time being in force.
15L(2).
Subject to the provisions of this Act:
(a).
The jurisdiction of the Securities Appellate Tribunal: may be exercised by its Benches.
(b).
A Bench of the Securities Appellate Tribunal: may be constituted by the Presiding Officer.
Such Bench shall consist of two or more members, being Judicial Members, or Technical Members, as the Presiding Officer may deem fit.
Every Bench constituted of the Securities Appellate Tribunal:
Shall include at least one Judicial Member.
Shall include at least one Technical Member.
(c).
The Benches of the Securities Appellate Tribunal shall ordinarily sit at Mumbai.
The Benches may also sit at other places as the Central Government may notify, in consultation with the Presiding Officer.
15L(3).
Notwithstanding anything contained in 15L(2):
The Presiding Officer of the Securities Appellate Tribunal may transfer a Judicial Member or a Technical Member,
Such transfer may be made from one Bench, to another Bench.
Section 15M. Qualification for appointment as Presiding Officer or Member of Securities Appellate Tribunal.
No person shall be qualified for appointment as the Presiding Officer, or a Judicial Member, or a Technical Member, of the Securities Appellate Tribunal,
Unless he fulfils the qualifications prescribed in the following clauses.
(a). In case of a Presiding Officer
He is, or has been at least one of the following:
A Judge of the Supreme Court.
A Chief Justice of a High Court.
A Judge of a High Court.
Where he has served as a Judge of a High Court, such service shall be for a period of not less than seven years.
(b). In the case of a Judicial Member
He is, or has been, a Judge of a High Court.
Such service as a Judge of a High Court shall be for a period of not less than five years.
(c). In the case of a Technical Member:
(i)
He is, or has been a Secretary, or an Additional Secretary.
Such post shall be In a Ministry or Department of the Central Government.
Any equivalent post in the Central Government or a State Government.
(ii).
He is a person of proven ability, integrity and standing.
He possesses special knowledge and professional experience of not less than fifteen years,
Such experience shall be in the financial sector, including:
The securities market.
Pension funds.
Commodity derivatives.
Insurance.
Section 15MA. Appointment of Presiding Officer and Judicial Member
The Presiding Officer and Judicial Members of the Securities Appellate Tribunal shall be appointed by the Central Government.
Such appointment shall be made: in consultation with the Chief Justice of India, or his nominee.
Section 15MB. Search-cum-Selection Committee
15MB(1).
The Technical Members of the Securities Appellate Tribunal shall be appointed by the Central Government.
This appointment will be made on the recommendation of a Search-cum-Selection Committee.
The Search-cum-Selection committee will consist off:
(a). The Presiding Officer of the Securities Appellate Tribunal shall act as the Chairperson.
(b). The Secretary, Department of Economic Affairs shall act as a Member.
(c). The Secretary, Department of Financial Services shall act as a Member.
(d). The Secretary, Legislative Department or the Secretary, Department of Legal Affairs shall act as a Member.
15MB(2).
The Secretary, Department of Economic Affairs shall be the Convener of the Search-cum Selection Committee.
15MB(3).
The Search-cum-Selection Committee shall determine its procedure for recommending the names of persons to be appointed under sub-section (1).
Section 15MC. Appointment Qualifications of the Presiding Officer
15MC(1).
The appointment o the Presiding Officer, a Judicial Member, or a Technical Member, of the SAT shall not be invalid merely by reason of:
Any vacancy, or any defect, In the constitution of the Search-cum-Selection Committee..
15MC(2).
No person shall be appointed as the Presiding Officer, or a Member, off the SAT, if such person is:
A Member or Part-time Member of:
The Board.
The Insurance Regulatory and Development Authority of India.
The Pension Fund Regulatory and Development Authority.
Any person holding a senior management position equivalent to Executive Director:
In the Board.
In any of the above Authorities.
Such disqualification shall apply:
During the period of service or tenure with the Board or such Authorities.
This disqualification will be for a period of two years from the date on which the person ceases to hold such office
15MC(3).
The Presiding Officer or any other Member of the SAT holding office on the date of commencement of Part VIII of Chapter VI of the Finance Act, 2017 shall:
Continue to hold office for the term for which he was originally appointed.
The other provisions of this Act shall continue to apply to such PO or Member as if Part VIII of Chapter VI of the Finance Act, 2017 had not been enacted.
Section 15N. Tenure of office of Presiding Officer and other Members of Securities Appellate Tribunal.
The Presiding Officer and every Judicial or Technical Member of the SAT shall hold office for a term of five years,
The five-year term shall be reckoned from the date on which he enters upon his office.
Such Presiding Officer or Member shall be eligible for reappointment,
The reappointment shall be for another term of a maximum of five years.
No Presiding Officer or Judicial Member or Technical Member of SAT shall hold office, after he has attained the age of seventy years.
Section 15O. Salary and allowances and other terms and conditions of service of Presiding Officers.
The salary and allowances payable to the Presiding Officer and other Members of the Securities Appellate Tribunal shall be such as may be prescribed.
The terms and conditions of service of the Presiding Officer and other Members shall include:
Pension, Gratuity, and other retirement benefits.
All such terms and conditions of service shall be as prescribed under the Act.
Neither the salary and allowances nor the other terms and conditions of service of the Presiding Officer, and other Members of the SAT shall:
Be varied to their disadvantage after their appointment.
Section 15P. Filling up of vacancies.
If, for any reason other than temporary absence, a vacancy occurs in the office of the Presiding Officer, or office of any other Member, of the SAT then:
The Central Government shall appoint another person, in accordance with the provisions of this Act, to fill such vacancy.
Upon such appointment:
The proceedings may be continued before the Securities Appellate Tribunal, from the stage at which the vacancy is filled.
Section 15PA.
In the event of a vacancy in the office of the Presiding Officer of the Securities Appellate Tribunal:
By reason of death, resignation, or otherwise.
The senior-most Judicial Member of the Securities Appellate Tribunal: shall act as the Presiding Officer.
Such arrangement shall continue until a new Presiding Officer is appointed, in accordance with the provisions of this Act.
Section 15Q. Resignation and removal.
15Q(1).
The Presiding Officer or any other Member of the Securities Appellate Tribunal may resign his office.
Such resignation shall be made by notice in writing, under his hand, addressed to the Central Government.
The Presiding Officer or any other Member of the SAT shall continue to hold office after submitting resignation.
Unless he is permitted by the Central Government to relinquish office earlier.
Such continuation shall be until the earliest of the following events:
Expiry of three months from the date of receipt of the notice of resignation.
The date on which a successor duly appointed enters upon office.
The expiry of his term of office.
15Q(2).
The Central Government may remove the following members of the SAT.
The Presiding Officer.
A Judicial Member.
A Technical Member.
Such removal shall be made after an inquiry conducted by a Judge of the Supreme Court,
Removal may be ordered if the concerned person falls within the following grounds:
(a).
The Presiding Officer or Judicial Member or Technical Member of the SAT is, or has at any time been, adjudged as an insolvent.
(b).
The Presiding Officer, Judicial Member, or Technical Member of the Securities Appellate Tribunal:
Has become physically incapable, or Has become mentally incapable,
Of acting as the Presiding Officer, Judicial Member, or Technical Member, as the case may be.
(c).
The Presiding Officer, Judicial Member, or Technical Member of the SAT has been convicted of an offence,
Such offence is one which, in the opinion of the Central Government involves moral turpitude.
(d).
The Presiding Officer, Judicial Member, or Technical Member of the SAT has abused his position.
Such abuse is, in the opinion of the Central Government of such a nature as to render his continuation in office detrimental to the public interest.
(e).
The Presiding Officer, Judicial Member, or Technical Member of the SAT:
Has acquired a financial interest, or any other interest,
Such interest is of a nature likely to prejudicially affect:
The discharge of his functions as Presiding Officer , Judicial Member, or Technical Member, as the case may be.
The Presiding Officer, Judicial Member, or Technical Member of the SAT shall not be removed from office under clause (d), or clause (e):
Unless he has been given a reasonable opportunity of being heard in the matter.
15Q(3).
The Central Government may by rules, regulate the procedure,
Such procedure shall relate to the investigation of misbehaviour, or incapacity, of the Presiding Officer or any other Member of the SAT.
Section 15QA.
Notwithstanding anything contained in this Act:
The following matters relating to the Presiding Officer and other Members of the Securities Appellate Tribunal shall be governed separately:
Qualifications, appointment, term of office, salaries and allowances.
Resignation, removal, and other terms and conditions of service.
This provision shall apply only to those PO and Members appointed after the commencement of Part XIV of Chapter VI of the Finance Act, 2017.
Such matters shall be governed by section 184 of the Finance Act, 2017.
The PO and Members of the SAT appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall:
Continue to be governed by the provisions of this Act, an the rules made thereunder.
Such governance shall apply as if section 184 of the Finance Act, 2017 had not come into force.
Section 15R. Orders constituting Appellate Tribunal to be final and not to invalidate its proceedings
The following cannot be challenged merely on the ground that there is any defect in the constitution of the SAT.
No order of the Central Government appointing any person as the Presiding Officer, or a Member, of the SAT shall be called to question in any manner.
No act or proceeding before the Securities Appellate Tribunal shall be called in question in any manner,
Section 15S. Staff of the Securities Appellate Tribunal.
15S(1).
The Central Government shall provide the SAT with such officers, and such employees as the Central Government may think fit
15S(2).
The officers and employees of the Securities Appellate Tribunal shall discharge their functions.
Such functions shall be performed under the general superintendence of the Presiding Officer.
15S(3).
The salaries and allowances and other conditions of service of the officers and employees of the SAT shall be such as may be prescribed.
Section 15T. Appeal to the Securities Appellate Tribunal.
15T(1).
Any person who is aggrieved may file an appeal before the (SAT) having jurisdiction,
This appeal can be filed in the following cases:
(a).
If the person is aggrieved by an order of the Board then he can file an appeal.
Provided that:
The order is made on or after the commencement of the Securities Laws (Second Amendment) Act, 1999.
The order is passed under this act , or rules and regulations made under this Act.
(b).
If the person is aggrieved by an order made by an adjudicating officer then he can file an appeal.
Provided that:
The order is made on or after the commencement of the Securities Laws (Second Amendment) Act, 1999.
The order is passed under this act , or rules and regulations made under this Act.
(c).
If the person is aggrieved by an order of the following authorities then he can file an appeal.
The Insurance Regulatory and Development Authority of India.
The Pension Fund Regulatory and Development Authority.
15T(2). Omitted.
15T(3).
Every appeal under 15T(1) shall be filed within forty-five days,
The forty-five-day period shall be from the date on which a copy of the order is received by the aggrieved person.
Such order may be passed by:
The Board.
The Adjudicating Officer.
The Insurance Regulatory and Development Authority of India.
The Pension Fund Regulatory and Development Authority.
The appeal shall be filed in such form as may be prescribed, and be accompanied by such fee as may be prescribed.
15T(4).
On receipt of an appeal under 15T(4), the Securities Appellate Tribunal shall give the parties to the appeal a reasonable opportunity of being heard.
After hearing the parties, the Securities Appellate Tribunal may pass such orders as it thinks fit.
Such orders may include:
Confirming the order appealed against.
Modifying the order appealed against.
Setting aside the order appealed against.
15T(5).
The Securities Appellate Tribunal shall send a copy of every order made by it.
Such copy shall be sent to:
The Boar.
The Insurance Regulatory and Development Authority of India.
The Pension Fund Regulatory and Development Authorit.
as the case may be.
The copy shall also be sent to the parties to the appeal, and the concerned Adjudicating Officer.
15T(6).
The appeal filed before the Securities Appellate Tribunal under 15T(1) shall be dealt with as expeditiously as possible.
The Securities Appellate Tribunal shall endeavour to dispose of the appeal finally,
Such disposal should be within a period of six months,
The six-month period shall be reckoned from the date of receipt of the appeal.
Section 15U. Procedure and powers of the Securities Appellate Tribunal.
15U(1).
The Securities Appellate Tribunal shall not be bound by the procedure laid down under the Code of Civil Procedure, 1908.
The Securities Appellate Tribunal shall be guided by the principles of natural justice.
This is subject to the other provisions of this Act, and any rules made thereunder.
The Securities Appellate Tribunal shall have the power to regulate its own procedure, including:
The procedure to be followed.
The places at which it shall hold its sittings.
15U(2).
For the purpose of discharging its functions under this Act:
The SAT shall have the same powers as are vested in a civil court under the CPC, 1908, while trying a suit.
Such powers shall extend to the following matters.
(a). Summoning and enforcing the attendance of any person and examining him on oath.
(b). Requiring the discovery and production of documents.
(c). Receiving evidence on affidavits.
(d). Issuing commissions for the examination of witnesses or documents.
(e). Reviewing its decisions.
(f). Dismissing an application for default or deciding it ex parte.
(g). Setting aside any order of dismissal of an application for default, or any order passed ex parte.
(h). Any other matter which may be prescribed.
15U(3).
Every proceeding before the Securities Appellate Tribunal shall be deemed to be a judicial proceeding.
Such judicial proceeding shall be within the meaning of:
Section 193 of the Indian Penal Code, 1860.
Section 228 of the Indian Penal Code, 1860.
For the purposes of section 196 of the Indian Penal Code, 1860 proceedings before the Securities Appellate Tribunal shall be so treated accordingly.
The Securities Appellate Tribunal shall be deemed to be a civil court:
For all the purposes of section 195.
Chapter XXVI of the Code of Criminal Procedure, 1973.
15U(4).
Where Benches are constituted of the Securities Appellate Tribunal:
The Presiding Officer of the Securities Appellate Tribunal may, from time to time:
Make provisions for the distribution of business of the Securities Appellate Tribunal.
Allocate such business amongst the Benches.
The Presiding Officer may also specify the matters which may be dealt with by each Bench.
15U(5).
The Presiding Officer of the Securities Appellate Tribunal may transfer any case pending before one Bench to another Bench for disposal.
Such transfer may be made in either of the following situations:
1. On the application of any party to the case
This can be done after giving notice to the parties and hearing such of the parties as the Presiding Officer considers necessary.
2. On the Presiding Officer’s own motion (suo motu)
This can be done without Without notice to the parties.
15U(6).
Where a Bench consisting of two Members of the Securities Appellate Tribunal differs in opinion on any point then:
Such Members shall state the point or points on which they differ.
They should also make a reference to the Presiding Officer of the Securities Appellate Tribunal.
Upon such reference:
The Presiding Officer shall either hear the point or points himself or refer the case for hearing only on such point or points.
It can be referred to one or more other members of the SAT.
The point or points in issue shall be decided:
In accordance with the opinion of the majority of the Members of the SAT who have heard the case.
This also includes those members who first heard it.
Section 15V. Right to legal representation.
The appellant before the SAT may appear in person, or may authorise one or more of the following persons to present his or its case.
The authorised representative may be:
A Chartered Accountant.
A Company Secretary.
A Cost Accountant.
A Legal Practitioner.
Any officer of the appellant.
Explanation:
(a).
Chartered accountant means a person who:
Is a chartered accountant as defined in Section 2(1) (b) of the Chartered Accountants Act, 1949.
That person should have obtained a certificate of practice under Section 6(1) of the Chartered Accountants Act, 1949.
(b).
Company secretary means a person who:
Is a company secretary as defined in Section 2(1)(c) of the Company Secretaries Act, 1980.
That person should have obtained a certificate of practice under Section 6(1) of the Chartered Accountants Act, 1949.
(c).
Cost accountant means a person who:
Is a cost accountant as defined in Section 2(1)(b) of the Cost and Works Accountants Act, 1959.
That person should have obtained a certificate of practice under Section 6(1) of the Chartered Accountants Act, 1949.
(d).
Legal practitioner means a person who is an advocate, or a vakil, or an attorney of any High Court,
The expression includes a pleader in practice.
Section 15W. Limitation.
The provisions of the Limitation Act, 1963 shall apply, as far as may be, to an appeal made to the SAT.
Section 15X. Presiding Officer, Members and staff of Securities Appellate Tribunals to be public servants.
The Presiding Officer, Members, and other officers and employees of the SA shall be deemed to be public servants,
Such deeming shall be within the meaning of section 21 of the Indian Penal Code, 1860.
Section 15Y. Civil Court not to have jurisdiction.
No civil court shall have jurisdiction to entertain any suit, o any proceeding, in respect of any matter which:
An adjudicating officer appointed under this Act is empowered by or under this Act to determine.
The Securities Appellate Tribunal constituted under this Act is empowered by or under this Act to determine.
No injunction shall be granted by any court or by any other authority.
The bar applies in respect of any action already taken or any action proposed to be taken.
Such action must be in pursuance of any power; conferred by or under this Act.
Section 15Z. Appeal to Supreme Court.
Any person aggrieved by any decision, or any order, off the SAT may file an appeal.
Such appeal shall lie to the Supreme Court of India.
The appeal shall be filed within sixty days,
The sixty-day period shall be from the date of communication of the decision or order of the SAT to the aggrieved person.
The appeal shall lie only on any question of law arising out of such decision or order.
The Supreme Court of India may allow an appeal to be filed after the prescribed period,
Extension:
The authority may allow filing of an appeal after the expiry of the original period of sixty days, if:
It is satisfied that the applicant was prevented from filing the appeal due to sufficient cause.
Such extension may be granted for a further period not exceeding sixty days.
