1.

Introduction Need for having separate laws meant for the securities market surfaced in the late eighties which became a reality in early nineties. Orderly development and protection of investors became the objective of the Government without which the capital market would not develop. In the later part of 1991, Department of the Controller of Capital Issues was abolished and in the first quarter of 1992 on 30.01.992 an ordinance enacting the Securities and Exchange Board of India Act, 1992 was passed. The Securities and Exchange Board of India (`SEBI) which was already in existence received statutory powers through the encactment. SEBI Act has since transformed the securities market into one which can be compared with the advanced countries. To redress grievances relating to the securities market, SEBI Act framed regulations and pursuant to S 15K of the Act, SEBI established the Securities Appellate Tribunal,formerly SEBI Appellate Tribunal and the word `SEBI was substituted by the word `Securities in 1995. Since 1995, all cases concerning securities laws which were to be appealed against came to be dealt by SAT only. To-day the securities laws constitute the Securities Contracts (Regulation) Act, 1956 (`SCRA), the Securities and Exchange Board of India Act, 1992 (SEBI ACT) and the Depositories Act, 1996 (`DA). SEBI regulates the securities market and SAT acts as a watchdog to ensure justice. SEBI was set up in line with the constitution and operation of the Securities Exchange Commission (SEC) of USA. Pursuant to S 29 and 15K, 15T and 15 U of the Act, SEBI constituted the Securities Appellate Tribunal (`SAT). The rules were repealed and the Securities Appellate Tribunal (Procedure) Rules, 2000 (`RULES) were notified vide GSR No. 142 (E) dated 18.02.2000. To regulate the working of SAT for dealing with matters with the SEBI Act, the Depositories Act and the Securities Contract Act, the SEBI Appellate Tribunal (Procedure) Rules, 2000 , the Depositories (Appeal to Securities Appellate Tribunal) Rules, 2000 and the Securities Contracts(Regulation)(Appeal to Securities Appellate Tribunal) Rules, 2000 were announced to come into effect from 18.2.2000. 2. Tribunal, SAT and Civil Procedure Code Article 227 of the Constitution of India defines tribunal as a person or a body other than a Court set up by the State for deciding rights of contending parties in accordance with rules framed for regulation having force of law. (Haripada Dutta v Ananta Mandal, AIR 1952 Cal 526,528). According to Websters International Dictionary it is a Court or forum of justice; a person or body of persons having authority to hear and decide disputes to bind disputants. Tribunal, distinguished from a court, exercises judicial power and decides matters judicially or quasi-judicially. It does not constitute a court in technical sense. (Engineering Mazdoor Sabha v. Hind Cycles Ltd.,AIR 1963 SC 874,878) [Consitution of India Art.136(1)]. Expression civil court includes all courts of civil judicature whose procedure is governed by the Code of Civil Procedure (CPC) and includes Revenue Courts in the State. (Mokshagundam Narasaiah v Estates Abolition Tribunal, AIR 1957 AP 903,907). Courts which decide disputed rights between subjects or between a subject and the State would be matter to be decided by civil courts as opposed to criminal courts where the state indicates wrongs committed against the public. While special courts have jurisdiction over a limited class of suits specified in the statute, jurisdiction of the civil courts is not limited to any class of suits. (Kalavagunta Sriramarao v.

Kalavagunta Suryanarayana Murthi, AIR 1954 Md 340,344,345.) . S 15 Y of the SEBI Act provides that no civil court shall have jurisdiction to entertain a suit or proceeding in respect of any matter in which an adjudicating officer (`AO) is appointed under the Act or SAT is empowered by or under the Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under the Act. S 15Z states that any order of SAT can be appealed before the Supreme Court within a period of 60 days. However, as per S 15 T (2) of the SEBI Act provides that after the commencement of the Securities Laws (Second Amendment) Act, 1999, no appeal shall lie on orders passed by an adjudicating officer with the consent of the parties. As per S 15 T (3) appeal is to be filed before SAT within 45 days from the receipt of the copy of the order of SEBI or AO accompanied by the prescribed fees. 45 days period time limit may be extended if the Tribunal is satisfied that there was sufficient cause for not filing the appeal within the time limit. SAT shall send copy of the order to SEBI, parties to the appeal and concerned Adjudicating Officer. All appeals filed before SAT is to be disposed of within 6 months of the filing the appeal. S 15 U of the Act provides that SAT shall not be regulated by the procedure of the Code of Civil Procedure, 1908 (CPC). SAT is guided on the principles of natural justice subject to other provisions of the Act and rules. SAT has the power to frame their own procedure and fix places of hearing. As regards discharge of functions, SAT has the same powers as vested in a civil court under the CPC for: a) summoning and enforcing attendance of any person and examining him on oath; b) requiring discovery and production of documents; c) receiving evidence on affidavits; d) issuing commissions for 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 any application for default or any order passed by it ex-parte; and h) any other matter which may be prescribed. Though no civil court has any jurisdiction to try any suit pertaining to securities laws, the procedure in trying any matter which comes up for adjudication will follow the procedure followed under CPC. Each proceeding shall be deemed to be judicial proceeding within the meaning of Ss 193 (Cognizance of offences by Courts of Session) and 228 (Framing of Charge), S 196 (Prosecution for Offences against the State and for criminal conspiracy to commit such offence) of the IPC and S 195 ( Prosecution for contempt of lawful authority of public servants for offence against public justice and for offences relating to documents given in evidence.) and Chapter XXVI (Provision as to offences affecting the Administration of Justice) of the Code of Criminal Procedure,1973. S 26 of the SEBI Act states that Courts shall not take cognizance of any offence punishable under the Act or rules save on a complaint by SEBI. No court inferior to that of a Court of Sessions shall try offence punishable under the Act. Appearance before SAT may be either in person or through authorized person being a Chartered Accountant, Company Secretary, Cost Accountant or Legal Practition