Authority: High Court of Judicature at Bombay, Nagpur Bench
Order Date: 16th July, 2026
Case Overview
The writ petition was filed by Radheshyam S/o Rajbanshi Tiwari challenging the Show Cause Notice dated 22/10/2021 issued by the Deputy General Manager (Investigation Department) of the Securities and Exchange Board of India (SEBI). The petitioner contended that the investigation was initiated under Section 11-C of the SEBI Act, 1992 by the same person who issued the Show Cause Notice, violating the principle that no person can be a judge in their own cause. The petitioner expressed apprehension that any reply submitted would not be considered fairly.
SEBI, represented by Senior Advocate Shri A.S. Jaiswal, clarified that the Show Cause Notice was not for imposition of penalty or action against the petitioner, but rather to provide an opportunity to show cause as to why an inquiry should not be held under Section 11-B(2) of the SEBI Act, 1992. SEBI submitted that all grounds raised by the petitioner could be addressed in their reply to the notice, which the concerned authority would consider when deciding whether an inquiry is necessary.
The Court found substance in SEBI's submissions and accepted their statement regarding the purpose of the notice. The bench comprising Justices Anil S. Kilor and Raj D. Wakode determined that interference with the impugned Show Cause Notice was not warranted at this stage.
Final Outcome
The court disposed of the petition without interfering with the Show Cause Notice. The petitioner was granted liberty to approach the court again if such occasion arises after submitting their reply. All points raised in the petition were kept open for future consideration if needed.
Topics: SEBI Enforcement, Judicial Review, Administrative Law