Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1950: Writ petition challenging appointment of Chairman SEBI CONSTITUTION OF INDIA |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Writ Petition |
Court | Supreme Court of India |
Disposal Nature | Others |
Headnote | CONSTITUTION OF IND/A, 1950:Art.32 - Writ petition challenging appointment of Chairman, SEBI - Held: Section 4(5) of SEBI Act inter alia stipulates that Chairman and other Members of SEBI shall be persons of "ability, integrity and standing who have shown capacity in dealing with problems relating to securities market" - Thus, statutorily, a person cannot be appointed as Chairman/Member of SEBI unless he or she is a person of high integrity - Therefore, selection and appointment of Chairman, SEBI could be challenged before Supreme Court in a writ petition under Art. 32 of the Constitution on the ground that he does not satisfy the statutory requirements of a person of high integrity - Securities and Exchange Board of India Act, 1992 - s. 4(5).SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992:s.4(5) - Appointment of Chairman of SEBI - Challenged on the ground of integrity, mala fides, conspiracy etc. - Held: SEBI is an institution of high integrity -- The functions performed by it are such that any malfunctioning in performance of such functions can disturb economy of the country - Therefore, only persons of high integrity would be eligible to be appointed as Chairman/Member of SEBI - This is imperative - There is no substance in the alleged irregularities regarding deputation of fourth respondent, the alleged misstatement/non-disclosure about his pay scale/ sanctioned emoluments as disclosed -- There is nothing which would render him a person of not high integrity - SEBI (Terms and Conditions of Service and Members) Rules, 1992 - r.3(5) -- IAS Cadre Rules - rr.6(2)(i) and 6(2)(ii).Appointment of Chairman, SEBI - Allegation of mala fide - Held: If the allegations of mala fide are established, it would vitiate the selection procedure, recommendation and appointment of fourth respondent as Chairman, SEBI - But, burden of proving the allegations of mala fide would lie very heavily on petitioner - It was incumbent on petitioner not only to make specific allegations, but also to produce very strong evidence to lead to a clear conclusion that the selection was actuated by mala fide - Petitioner has not made out a case of mala fide to vitiate the selection process and appointment of fourth respondent as Chairman, SEBI.Appointment of Chairman, SEBI - Allegation of conspiracy - Held: The charge of conspiracy has to be taken seriously as it involves commission of very serious criminal offence u/s 120-B, IPC - Such a charge of criminal intent and conduct had to be clearly pleaded and established by evidence of very high degree of probative value - No notice of such allegations can be taken based only on pure conjectures, speculations and interpretation of notings in the official files - Appointment of fourth respondent is strictly in conformity with the procedure prescribed - Petitioner has not placed on record any material to establish that any conspiracy was hatched to ensure the selection of fourth respondent as Chairman, SEBI - All India Services (Death-cum-Retirement Benefits) Rules, 1958 - rr.16 and 26.PUBLIC INTEREST LITIGATION:Writ petition challenging appointment of Chairman, SEBI - Held: In the instant case, petitioner has unjustifiably attacked integrity of the entire selection process - The petition does not satisfy the test of utmost good faith which is required to maintain public interest litigation -- On facts, petitioner could not justify invoking the jurisdiction of the Court under Art. 32. |
Judge | Hon'ble Mr. Justice S.S. Nijjar |
Neutral Citation | 2013 INSC 744 |
Petitioner | Arun Kumar Agrawal |
Respondent | Union Of India & Ors. |
SCR | [2014] 3 S.C.R. 861 |
Judgement Date | 2014-10-01 |
Case Number | 374 |
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