PC:-

1. The Petitions challenge a rejection by Securities Exchange Board of India (“SEBI”) of what is called a Settlement Application. The facts in the two Petitions are identical and we will therefore refer to the record in Writ Petition (L) No. 11717 of 2023. The Petitioner in the second Writ Petition is a director of the Petitioner in the first Writ Petition.

2. The background is this. SEBI issued a show cause notice to Binny Ltd on 24th November 2022. A copy of that show cause notice, running to some 28 pages, is at Exhibit ‘A’ from page 66. The notice mentions in paragraph 12 that under the SEBI (Settlement Proceedings) Regulations, 2018 (“Regulations”), there is a settlement mechanism provided. Should Binny wish to opt for a settlement process, it could apply in the manner given in these Regulations under intimation to SEBI. Binny was put to notice that the filing of a Settlement Application did not confer any right to seek the settlement of the proceedings. The Settlement Application, which we will examine in detail a little later, is at page 95. It was filed on 24th December 2022. Binny was afforded a personal hearing on 20th February 2023. In parallel, on 31st January 2023.