902-WP-4528-2026.DOC IN THE HIGH COURT OF JUDICATURE AT BOMBAY CRIMINAL APPELLATE JURISDICTION CRIMINAL WRIT PETITION NO.4528 OF 2026 Sunil Kumar Goyal …Petitioner Versus Securities and Exchange Board India & Anr. …Respondents Ms. Sneha Pandey a/w. Mr. Sukrut Mhatre and Mr. Jitendra Sharda, for the Petitioner. Ms. Anubha Rastogi, for Respondent No.1-SEBI Mrs. M. R. Tidke, APP, for Respondent No.2-State. CORAM: MADHAV J. JAMDAR, J. DATED : 9th SEPTEMBER 2026 PC:- 1. Heard Ms. Pandey, learned Counsel appearing for the Petitioner, Ms. Rastogi, learned Counsel appearing for Respondent No.1 and Mrs. Tidke, learned APP appearing for Respondent No.2- State. 2. By this Writ Petition, the challenge is to the legality and validity of the order dated 29th April 2026 passed by the learned SEBI Special Judge, City Civil and Sessions Court, Greater Mumbai in Special Case (SEBI) No.302 of 2026. By the impugned order, process has been issued against the Petitioner for the offence Page 1 Sonali 902-WP-4528-2026.DOC punishable under Section 24(2) of the Securities and Exchange Board of India Act, 1992 (“SEBI Act”). 3. It is the submission of learned Counsel appearing for the Petitioner that before issuing process, an opportunity of hearing is required to be given to the accused, as provided under Section 223(1) of the Bharatiya Nagarik Suraksha Sanhita, 2023 (“BNSS”). To substantiate this contention, the Petitioner relies on the decision of a learned Single Judge in the case of Neville Tuli vs. Securities and Exchange Board of India & Anr.1 4. On the other hand, Ms. Rastogi learned Counsel appearing for Respondent No.1 and Mrs. Tidke, learned APP appearing for Respondent No.2-State support the impugned order. 5. Perusal of the impugned order dated 29th April 2026 shows that the learned Judge issued process against the Petitioner for the offence punishable under Section 24(2) of the SEBI Act on the ground that, despite communication of the adjudication order dated 24th June 2020, the Petitioner failed to deposit the penalty of 1 Criminal Writ Petition No.5242 of 2025 Page 2 Sonali 902-WP-4528-2026.DOC Rs.1 Crore within the stipulated period and thereby committed the offence punishable under Section 24(2) of the SEBI Act. 6. The relevant portion of Section 223 of the BNSS on which learned Counsel for the Petitioner has relied, reads as under: “223. (1) A Magistrate having jurisdiction while taking cognizance of an offence on complaint shall examine upon oath the complainant and the witnesses present, if any, and the substance of such examination shall be reduced to writing and shall be signed by the complainant and the witnesses, and also by the Magistrate: Provided that no cognizance of an offence shall be taken by the Magistrate without giving the accused an opportunity of being heard: ” (Emphasis added) Thus, the first proviso to Section 223 of the BNSS specifically provides that the Magistrate having jurisdiction while taking cognizance on complaint shall not take cognizance without giving the accused an opportunity of being heard. Thus, the first proviso to Section 223 of the BNSS specifically provides that no cognizance of an offence on complaint shall be taken by the Magistrate without giving the accused an opportunity of being heard. Thus, the first proviso to Section 223 of the BNSS specifically provides Page 3 Sonali 902-WP-4528-2026.DOC that before taking cognizance of an offence on complaint, the Magistrate shall give the accused an opportunity of being heard. 7. The question which is involved in this Writ Petition is whether the provisions contained in Section 223 of the BNSS, which is the general law governing the investigation, inquiry or trial of the offences apply to and govern prosecutions under the SEBI Act. The said question is considered in detail by a learned Single Judge in Neville Tuli (supra) and the same is answered in paragraph No.52 of the said decision, which reads as under: “52. The conspectus of aforesaid consideration is that, the question framed above is required to be answered in the affirmative. The Special Court cannot take cognizance of the offences punishable under the SEBI Act, 1992, without compliance of the peremptory requirement of providing an opportunity of hearing to the accused, as provided under the first proviso to Section 223(1) of the BNSS, 2023.” (Emphasis added) 8. Thus, the learned Single Judge has held that Special Court cannot take cognizance of the offences punishable under the SEBI Act, without compliance of the peremptory requirement of providing an opportunity of hearing to the accused, as provided Page 4 Sonali 902-WP-4528-2026.DOC under the first proviso to Section 223(1) of the BNSS. Thus, the impugned order issuing process against the Petitioner under Section 24(2) of the SEBI Act without following mandatory requirement of Section 223(1) of the BNSS, which specifically provides that before taking cognizance of an offence, it is necessary to give hearing to the accused i.e. Petitioner. 9. Accordingly, the order dated 29th April 2026 passed by the learned SEBI Special Judge, City Civil and Sessions Court, Greater Mumbai, below Exhibit-1 in Special Case (SEBI) No.302 of 2026 (Exhibit-A, Pages 26 and 27 of the Writ Petition) is quashed and set aside. 10. Resultantly, the order dated 25th June 2026 issuing Non- Bailable Warrant against the Petitioner is also quashed and set aside. 11. Ms. Pandey, learned Counsel appearing for the Petitioner states that the next date before the learned SEBI Special Judge, City Civil and Sessions Court, Greater Mumbai, is 4th November Page 5 Sonali 902-WP-4528-2026.DOC 2026 and the Petitioner will appear before the learned Special Judge on that date. 12. Learned SEBI Special Judge, City Civil and Sessions Court, Greater Mumbai, to pass an order regarding taking cognizance of the offence under Section 24(2) of the SEBI Act in accordance with law after providing an opportunity of hearing to the Petitioner. 13. It is clarified that this Court has not considered the merits and all contentions of both the parties are expressly kept open. 14. Accordingly, the Writ Petition is disposed of. [MADHAV J. JAMDAR, J.] Page 6 Sonali SONALI MILIND PATIL Digitally signed by SONALI MILIND PATIL Date: 2026.09.10 10:25:32 +0530