SC pulls up government for delay in SAT judges’ appointment

The Supreme Court has pulled up the government for delay in the appointment of judges to the Securities Appellate Tribunal (SAT). The apex court said it was ‘unfortunate’ that only a single member was running the tribunal and has asked Attorney General of India to specify by when the government will hire the two other judges in the tribunal. The move comes as several appeals in securities and insurance sectors are currently stuck in SAT due to absence of both a judicial member and quorum.The issue came up during the hearing of Vishvapradhan Commercial (VCPL) vs Quantum Securities in the matter of New Delhi Television (NDTV). “This Court wants to know as to when other judicial and technical members will be appointed, which we hope will be done as quickly as possible,” observed the two-member Supreme Court bench comprising Justice RF Nariman and Justice Indu Malhotra.SAT is a quasi-judicial body that takes up appeals pertaining to market regulator Securities and Exchange Board of India (Sebi) and Insurance Regulatory and Development Authority (IRDAI). The tribunal has also been entrusted the responsibility to hear appeals against Pension Fund Regulatory and Development Authority (PFRDA).While the full-bench strength of SAT is three members, it currently has only one member – CKG Nair. Since Presiding Officer J P Devadhar remitted office in July and Jog Singh’s tenure ended in February, both positions have been vacant. The tribunal doesn’t have any judicial members after Devadhar’s exit. As per the rules, presence of a judicial member is mandatory for hearing any appeals against regulators.“The law is very clear about need for a judicial member in the bench. Hence, orders being passed without judicial member could land in trouble subsequently,” said Sandeep Parekh, founder, Finsec Law Advisors.