MISCELLANEOUSCentral

Section 26E of The Securities and Exchange Board of India Act, 1992

Transitional provisions.

Any offence committed under this Act, which is triable by a Special Court shall, until a Special Court is established, be taken cognizance of and tried by a Court of Session exercising jurisdiction over the area, notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974):

Provided that nothing contained in this section shall affect the powers of the High Court under section 407 of the Code of Criminal Procedure, 1973 (2 of 1974) to transfer any case or class of cases taken cognizance by a Court of Session under this section.]

Summary

If a Special Court has not yet been established, any offence under this law that a Special Court should try will be handled by a Court of Session instead.
The Court of Session must be the one exercising jurisdiction (legal authority) over the area where the offence occurred.
The local Court of Session has the power to take cognizance (formally accept the case) and try it in the meantime.
This temporary rule applies despite anything written in the Code of Criminal Procedure, 1973.
The High Court keeps its authority to transfer any case or class of cases from a Court of Session to another court.
This transfer power of the High Court comes from section 407 of the Code of Criminal Procedure, 1973.

Practical examples

1In March 2024, someone commits an offence triable by a Special Court, but the government has not set one up in that region yet. The regular Court of Session in that area automatically takes charge of the trial so justice is not delayed.

2A local Court of Session is handling an insider trading case because the Special Court does not exist yet. The High Court reviews the situation and decides to transfer the case to a different court, utilizing its powers under section 407 of the Code of Criminal Procedure, 1973.

FAQ

1. Who tries an offence if the government has not yet established a Special Court in the area?

A Court of Session exercising jurisdiction over that specific area will take cognizance (formally accept and acknowledge the case) of the offence and try it.

2. Does the normal procedural code prevent a Court of Session from stepping in?

No, the Court of Session takes over the case notwithstanding anything contained in the Code of Criminal Procedure, 1973.

3. Can a case be moved once a Court of Session starts trying it under this rule?

Yes, the High Court can still transfer the case using its powers under section 407 of the Code of Criminal Procedure, 1973.

Test yourself

1.Under Section 26E of The Securities and Exchange Board of India Act, 1992, which judicial body tries an offence if a Special Court has not yet been established?

2.Under Section 26E of The Securities and Exchange Board of India Act, 1992, what happens if the rules in the Code of Criminal Procedure, 1973 generally conflict with a Court of Session taking up a Special Court case?

3.How does the cross-reference to section 407 of the Code of Criminal Procedure, 1973 limit the transitional rules in Section 26E of The Securities and Exchange Board of India Act, 1992?

4.Under Section 26E of The Securities and Exchange Board of India Act, 1992, what triggers the transitional provision to end?

26DPreviousSection 26D Application of Code to proceedings before Special Court.27NextSection 27 Contravention by companies].—(1) Where 5[a contravention of any of the provisions of this Act or any rule, regulation, direction or order made thereunder] has been committed by a company, every person who at the time the 6[contravention] was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the 6[contravention] and shall be liable to be proceeded against and punished accordingly:

←Section 26D Section 27→