Case Note & Summary
The petitioner, Neville Tuli, an entrepreneur aged 61, filed a writ petition under Article 227 of the Constitution of India and Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS, 2023) challenging summons issued by the Securities and Exchange Board of India (SEBI) under Section 11(2) and 11(3) of the SEBI Act, 1992. The petitioner contended that the summons were issued without proper application of mind and were vague, lacking specific allegations or material. The court, after hearing the parties, found that the summons did not disclose any specific violation or purpose and appeared to be a routine exercise of power. The court held that the power to summon under the SEBI Act must be exercised with due application of mind and not as a matter of course. Consequently, the court allowed the petition, quashed the impugned summons, and directed SEBI to issue fresh summons if necessary, after proper application of mind.
Headnote
A) Constitutional Law - Article 227 - Supervisory Jurisdiction - High Court can interfere with orders of subordinate tribunals if there is patent error of law or lack of jurisdiction. (Para 2)
B) Criminal Procedure - Summons - Section 528 BNSS, 2023 - Summons must be issued with due application of mind and not mechanically. (Para 2)
C) Securities Law - SEBI Act, 1992 - Section 11(2) and 11(3) - Power to summon - Must be exercised for specific purpose and not as a roving inquiry. (Para 2)
Issue of Consideration
Whether the summons issued by SEBI to the petitioner under Section 11(2) and 11(3) of the SEBI Act, 1992, read with Section 528 of BNSS, 2023, were issued without proper application of mind and are liable to be quashed.
Final Decision
The court allowed the petition, quashed the impugned summons, and directed SEBI to issue fresh summons if necessary, after proper application of mind.
Law Points
- Article 227 of the Constitution of India
- Section 528 of BNSS 2023
- Section 11(2) and 11(3) of SEBI Act 1992
- Application of mind
- Summons
- Quashing of proceedings
Case Details
2026 LawText (BOM) (07) 8
Writ Petition No. 5242 of 2025
Mr. Vyapak Desai, a/w Mr. Manish Bohra, Mr. Ansh Desai, i/b Manish Bohra, for the Petitioner. Mr. Sudeep Pasbola, Senior Advocate, a/w Mr. Chetan Mali, Mr. Rajan Gurnani, Ms. Janki Patil, Mr. Sachin Mishra & Mr. Umang Arya, for Respondent No.1 - SEBI. Mr. D. J. Haldankar, APP for Respondent No.2 - State.
Securities and Exchange Board of India (SEBI) & State of Maharashtra
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Nature of Litigation
Writ petition under Article 227 of the Constitution of India and Section 528 of BNSS, 2023 challenging summons issued by SEBI.
Remedy Sought
Quashing of summons issued by SEBI under Section 11(2) and 11(3) of the SEBI Act, 1992.
Filing Reason
Petitioner contended that the summons were issued without proper application of mind and were vague.
Issues
Whether the summons issued by SEBI under Section 11(2) and 11(3) of the SEBI Act, 1992 were issued without proper application of mind?
Whether the High Court can interfere under Article 227 with such summons?
Submissions/Arguments
Petitioner argued that the summons were issued mechanically without any specific allegations or material.
SEBI argued that the summons were valid and issued in exercise of statutory powers.
Ratio Decidendi
The power to summon under Section 11(2) and 11(3) of the SEBI Act, 1992 must be exercised with due application of mind and not as a routine matter. Summons issued without proper application of mind are liable to be quashed under Article 227 of the Constitution of India.
Judgment Excerpts
This Petition under Article 227 of the Constitution of India and Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (“BNSS, 2023”) poses the following question:
Procedural History
The petitioner filed a writ petition before the High Court of Judicature at Bombay challenging summons issued by SEBI. The court heard the parties and reserved judgment on 09th April 2026, pronouncing it on 15th July 2026.
Acts & Sections
- Constitution of India: Article 227
- Bharatiya Nagarik Suraksha Sanhita, 2023: Section 528
- Securities and Exchange Board of India Act, 1992: Section 11(2), Section 11(3)
