Over 400 cases pending with SAT due to lack of members: Report

The Securities and Appellate Tribunal (SAT) has not taken up a single case in more than a fortnight, after its presiding officer JP Devadhar resigned on July 11.

This has resulted in the halting of hearings in over 400 appeals against orders issued by capital markets regulator Securities and Exchange Board of India (SEBI).

In addition to these, there are other pending appeals against orders issued by the Insurance Regualtory and Development Authority of India (IRDAI) and the Pension Fund Regulatory and Development Authority of India (PFRDA).

Rules state a three-member panel is required to hear appeals and that the presence of a judicial member on the panel is a must for interim relief and admission of appeals. At present, the tribunal only has one member -- CKG Nair -- who cannot pass orders because he is not a member of the judiciary.

If the minimum number of members criteria cannot be met, there is a system in place wherein the tribunal can carry out temporary rulings, in case of urgent matters, and a new bench would then review those rulings.

This system was introduced following the retirement of SAT member Jog Singh in February.

The retirement of a member is known in advance, but is never backed up with a proper plan for succession, independent counsel Somasekhar Sundaresan was quoted as saying by Business Standard.

Industry experts also warned that there could be a further delay in appointments because of the fast-approaching 2019 Lok Sabha election.

Just to put things in perspective, the SAT heard more than 450 appeals in FY17, 180 of which were dismissed, and 7 of which were allowed.

The Appointments Committee of the Cabinet is the body that decides the appointment of a SAT member. The committee has representations from both the finance ministry and the Reserve Bank of India and usually has the presiding officer as one of its members.