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Securities & Capital Markets LawSupreme Court of India

Videocon International Ltd. v. Securities and Exchange Board of India

Civil Appeal · Neutral citation not assigned (Civil Appeal No. 117 of 2005)Decided 13 Jan 2015
Civil Appeal No. 117 of 2005
Justice J.S. Khehar · Justice M.Y. Eqbal

Background

SEBI (the Board) had filed several appeals before the Bombay High Court against common orders of the Securities Appellate Tribunal (SAT), as permitted by the then-existing Section 15Z of the SEBI Act. While those appeals were pending, Section 15Z was amended (with retrospective effect from 29.10.2002) to shift the second-appeal forum for SAT orders from the High Court to the Supreme Court, and to limit such appeals to questions of law only. Videocon, the opposite party in those SAT appeals, argued before the High Court and then the Supreme Court that once the forum changed, the Board's appeals already pending in the High Court before the amendment could no longer be heard there, and should instead have to be pursued (if at all) only before the Supreme Court; the High Court held that appeals filed before the amendment remained validly before it, while appeals filed after the amendment did not, and Videocon challenged the former part of that ruling.

Decision Breakdown

The Supreme Court held that a change of appellate forum is not automatically "merely procedural", relying on its own precedent (including Ambalal Sarabhai Enterprises and a Commissioner of Income Tax, Orissa ruling), it held that once an appeal has actually been filed in a particular forum, that forum becomes a vested, substantive right unaffected by a later change in law unless the amending provision expressly says otherwise; Section 6 of the General Clauses Act, 1897 reinforces that an amendment which is not expressly retrospective does not disturb pending proceedings. Since none of the Board's appeals affected here had been filed after the amendment came into force, they remained validly and permanently before the High Court, and the Court found no merit in Videocon's challenge. Invoking its special powers under Article 142 of the Constitution, the Court directed that this ruling would govern all the connected cases disposed of together by the High Court's common impugned order, and dismissed the appeal.

Lesson Learnt

When a law changes which court or tribunal hears an appeal, cases already filed in the original forum generally stay there as a protected, vested right: a litigant cannot use a later change in the appellate forum to argue that an already-pending appeal against them has become invalid, unless the amending law says so explicitly.

Videocon International Ltd. v. Securities and Exchange Board of India – Legal Case Shots | LegalAware