SAT's Achilles' Heel: The Urgent Case For Contempt Powers

Born from a need for expediting resolutions, tribunals have evolved into indispensable part of the Judiciary since they represent the hope to satisfy public demand for quick and effective justice. While tribunals such as the National Company Law Tribunal and National Company Law Appellate Tribunal wield codified contempt powers to enforce their orders, the Securities Appellate Tribunal is a clear exception. The uniqueness of SAT's status further draws strength from Section 15M of the SEBI Act, which states that only judicial experience of the High Court can be at the helm of the Tribunal. - The Tribunal and the Appellate Tribunal shall have the same jurisdiction, powers and authority in respect of contempt of themselves as the High Court has and may exercise, for this purpose, the powers under the provisions of the Contempt of Courts Act, 1971, which shall have the effect subject to modification that- The reference therein to a High Court shall be construed as including a reference to the Tribunal and the Appellate Tribunal; and The reference to Advocate-General in section 15 of the said Act shall be construed as a reference to such Law Officers as the Central Government may, specify in this behalf.” However, the SAT has long grappled with a significant gap in the codification of regulations. All in all, codifying contempt powers for the SAT would ensure that non-compliant market participants do not escape from the Tribunal's judicial clutches as the 'what ifs' in this regard, are numerous.