Adjudication order in respect of Geeta Devi Sharma in the matter of Dwitiya Trading Ltd. BEFORE THE ADJUDICATING OFFICER SECURITIES AND EXCHANGE BOARD OF INDIA [ADJUDICATION ORDER NO. Order/GR/KG/2020-21/ 9897] ORDER UNDER SECTION 15-I OF THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992, READ WITH RULE 5 OF THE SEBI (PROCEDURE FOR HOLDING INQUIRY AND IMPOSING PENALTIES) RULES, 1995 IN THE ADJUDICATION PROCEEDINGS INITIATED IN RESPECT OF GEETA DEVI SHARMA [PAN: AZLPS9195G] IN THE MATTER OF DWITIYA TRADING LIMITED. BACKGROUND
1. The Securities and Exchange Board of India (hereinafter referred to as SEBI), initiated Adjudication Proceedings inter alia in respect of Geeta Devi Sharma (hereinafter referred to as Noticee) for the alleged violation of Regulation 13(4A) of SEBI (Prohibition of Insider Trading) Regulations, 1992, in the matter of Dwitiya Trading Limited (hereinafter referred to as the Company).
2. SEBI conducted examination in the scrip of the company in the matter of misutilisation of funds raised through preferential issue during February 28, 2013 to May 10, 2013. Examination had prima facie revealed that a group of fourteen promoters including the Noticee had failed to disclose their change in shareholding in the company (more than 1%) to the company and the stock exchange where its shares were listed, thereby violating provisions of Regulation 13(4A) of SEBI (Prohibition of Insider Trading) Regulations, 1992. APPOINTMENT OF ADJUDICATING OFFICER
3. The Competent Authority has, vide order dated September 4, 2020, appointed the undersigned as the Adjudicating Officer (hereinafter referred to as the AO) under section 15I(1) of the SEBI Act, 1992 read with Rule 3 of the Securities and Exchange Board of India (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 (hereinafter referred to as the SEBI Adjudication order in respect of Geeta Devi Sharma in the matter of Dwitiya Trading Ltd. Adjudication Rules) inter alia to enquire into and adjudge under section 15A(b) of SEBI Act, 1992 for the alleged violations by the Noticee. SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING
4. Show Cause Notice dated November 11, 2020 (hereinafter referred to as SCN) was issued inter alia to the Noticee under rule 4 of the Rules to show cause as to why an inquiry should not be held and penalty be not imposed under section 15A(b) of SEBI Act, 1992 on the Noticee for the alleged violation specified in the said SCN.
5. From the material available on record, I note that the SCN was duly served at the address of the Noticee. Thereafter, vide email dated December 7, 2012, Mr. Raj Kumar Sharma, son of the Noticee, has informed that the Noticee has passed away on December 20, 2019. In this regard, a copy of Certificate of Death dated December 20, 2019 of the Noticee was submitted.
6. I note that the Honble Supreme Courts 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 (Order dated September 14, 2016), wherein Adjudication Proceedings against Late N. Mahalingam were abated. In the present case, I note from the copy of the Death Certificates dated December 20, 2019, issued by the Kolkata Municipal Corporation, that the Noticee had passed away on December 20, 2019.
7. Therefore, by relying on the aforementioned Order of Honble Supreme Court, I am of the view that the Adjudication Proceedings initiated against the Noticee will not survive and is liable to be abated without going into the merits of the Adjudication order in respect of Geeta Devi Sharma in the matter of Dwitiya Trading Ltd. case. Consequently, no penalty is imposed on the Noticee, who have since deceased and the Adjudication Proceedings shall stand abated.
8. Accordingly, the aforesaid Adjudication Proceedings initiated against the Noticee viz. Late Geeta Devi Sharma vide SCN No. EAD-4/GR/KG/OW/19215 /2020 dated November 11, 2020 is disposed of without further going into the merits of the case.
9. In terms of the provisions of Rule 6 of the Rules, a copy of this Order is being sent to respective representatives of the Noticees and also to SEBI. Date : December 23, 2020 Shri G Ramar Place : Mumbai Adjudicating Officer