SC restores SAT appeal, says first appeal is a "precious right" while condoning 1059-day delay
New Delhi, May 21
The Supreme Court has condoned a delay of 1059 days in filing an appeal before the Securities Appellate Tribunal, observing that a first appeal on facts and law is a "precious right" and that a litigant should ordinarily get an opportunity to contest the case on merits.
A Bench of Justice Pamidighantam Sri Narasimha and Justice Alok Aradhe passed the order in an appeal filed by Khelo MCX Research Services against the Securities and Exchange Board of India.
The Court set aside the SAT's September 16, 2025, order, which had refused to condone the delay and consequently dismissed the appeal itself.
In its order, the Supreme Court noted that although the appellant had not explained the delay on a day-to-day basis, several personal and financial hardships had been cited in the condonation application. These included the appellant's sister's marriage, the father's serious medical ailments requiring treatment and travel, financial difficulties during the Covid-19 pandemic, and the disruption of business due to the ongoing investigation.
Appearing for the appellant were Senior Advocate Vivek Tankha and Advocate-on-Record Ishaan George, along with Dr Rukma George and Sumit Kumar Siddharth. Senior Advocate Navin Pahwa appeared for SEBI along with Abhishek Singh and K Ashar & Co., AOR.
The Court also took note of the appellant's contention that he had shifted from his old residential address without updating SEBI records and allegedly became aware of the impugned SEBI order only after being contacted by the Crime Branch, Indore, in June 2024.
Emphasising the importance of appellate remedies, the Bench observed, "Apart from the possible explanation as indicated hereinabove, as the Securities Appellate Tribunal provides an appeal on facts, it is important that the appellant must have one appellate forum to contest the case against him on facts. First appeal is a precious right."
The Court accordingly condoned the delay, subject to payment of costs of Rs. 5 lakh to be deposited in the "SEBI Investor Protection and Education Fund" within three weeks.
However, the Bench clarified that it had not examined the merits of the dispute and that the SAT would independently adjudicate the matter on the merits. The appeal before SAT has now been restored to its original number for fresh adjudication.
— ANI
Reader Comments
While I appreciate the SC's leniency, I'm worried this sets a bad precedent. People will think they can delay cases indefinitely and then cite medical issues or family functions. 🤔 SEBI matters are serious financial regulations; the appellant should have been more responsible. Still, the cost of Rs 5 lakh is substantial, so maybe balance is maintained.
Hats off to the judiciary! 🙏 The Supreme Court rightly recognized that justice is about substance, not just procedure. In our country, many poor litigants lose cases because they can't afford continuous legal representation. If someone had their father sick, sister's marriage, and COVID disruption, a 3-year delay is understandable. SAT should now hear the case on merit.
From a western perspective, this is very unusual. In the US, a 3-year delay would almost never be condoned unless there was extraordinary circumstances like imprisonment. The Indian approach seems more empathetic but also risks undermining legal certainty. The cost is a nice compromise. Let's see how SAT handles the actual merits now.
Interesting case. What strikes me is that the appellant didn't know about the SEBI order until Crime Branch contacted him! That's a serious lapse in communication. If you're involved in financial markets, you have a responsibility to stay updated. But the SC's observation about first appeal being a "precious right" is legally sound. SAT will now have the final word.
This is typical Indian jurisprudence - balancing strict law with human realities. The Rs
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