In Brief
The Indian Commodity Exchange Limited (successor to NMCE) challenged a decision of the Securities Appellate Tribunal that had set aside proceedings initiated by the Forward Markets Commission (now SEBI) against Neptune Overseas Limited and its Managing Director. The Court held that while the original show cause notice of June 2011 was not formally served on the company, treating both respondents together via piercing the corporate veil was justified. However, the FMC's denial of requested documents and closure of proceedings within 14 days of supplying 4,000 pages of documents violated procedural fairness. The Court set aside the FMC order and remitted the matter to SEBI to provide adequate time, supply outstanding documents, and conduct fresh proceedings with day-to-day hearings, without issuing a fresh show cause notice.
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