SAT can hear appeals in absence of technical member

Context    

The Securities Appellate Tribunal that its bench which has the presiding officer and a judicial member have the powers to hear matters even in the absence of a technical member.

About the Securities Appellate Tribunal

• Securities Appellate Tribunal is a statutory body established under the provisions of Section 15K of the Securities and Exchange Board of India Act, 1992.
  • It was established to hear and dispose of appeals against orders passed by the Securities and Exchange Board of India.
• Jurisdiction: SAT hears and disposes of appeals against orders passed by the
  • Pension Fund Regulatory and Development Authority (PFRDA) under the PFRDA Act, 2013.
  • Insurance Regulatory Development Authority of India (IRDAI) under the Insurance Act, 1938
  • General Insurance Business (Nationalization) Act, 1972
  • Insurance Regulatory and Development Authority Act, 1999
• Composition: SAT consists of a Presiding Officer and Two other members.
  • The Presiding officer is appointed by the Central Government in consultation with the Chief Justice of India or his nominee.

• Appeals: It has the same powers as vested in a civil court. Further, if any person feels aggrieved by SAT’s decision or order can appeal to the Supreme Court.

Concern of SEBI

• The order comes after Sebi questioned the composition of the tribunal''s bench hearing the appeals filed before it.
  • The tribunal functions with a presiding officer, a judicial member and a technical member. But right now it was working without a technical member who is appointed by the central government.
  • The section 15L(2)(b) of Sebi Act stipulates that every bench must have at least one technical member as a mandatory provision.
• Sebi''s argued that since no technical member is present, the constitution of the bench is defective and orders passed by the bench would be "coram non judice".

SAT’s Order

• Tribunal comprising of a presiding officer and a judicial member is not defective on account of non-availability of technical member and that the bench constituting the presiding officer and judicial member can proceed to hear and decide the appeals, etc which are filed before the SAT.
• The tribunal has also recommend to make necessary amendments and resolve the discrepancy in the charging section to the proviso under Section 15L(2)(b)".