*Animish Pradip Raje Vs SEBI*
*Writ Petition No 7972 of 2021*
*Forum- Telangana High Court*

*Sub- Whether appointment of Grant Thornton as forsenic auditor of a company by SEBI was hit by principle of bias when one of the independent directors of the Company was deeply connected with sister concern of Grant Thornton.*

In one of the finest judgements in common law where the Hon’ble Court dismissed challenge by *Senior Advocate Arvind Dattar* appearing on behalf of SEBI regarding 1) *cause of action* not having arisen in Telangana High Court-when the court extensively dealt with the meaning of cause of action and held that the question as to whether cause of action has arisen wholly or in part, within the territorial limits of a High Court where a writ petition has been filed, would have to be decided keeping in view the nature and the characteristics of the proceedings filed. Even a fraction of a cause of action having arisen in the territorial jurisdiction of the court will vest jurisdiction on it. But that should be integral to the relief prayed for in the petition and not some extraneous or irrelevant averment, that has no nexus with the remedy sought against the respondent. While examining an objection taken on lack of cause of action, the court must also be mindful of the principles of forum conveniens. The court being mindful of minority shareholders dismissed this plea.

2) Regarding *principle of Bias **the court referred to a decision of the year 1923 in *King Vs Sussex (1923) All ER 233 **where it was observed Nothing is to be done which creates even a suspicion that there has been an improper interference with the course of justice. The court examined catena of decisions and on these facts, the appointment of Grant Thornton as Forsenic Auditor was quashed and set aside with a direction to SEBI to appoint another auditor from the panel.

*This is one of the finest judgement in relation to “Cause of action”, “Principles of natural justice” and “Bias”. Must read judgement for all professionals and those who are interested *.

Incidentally the *CJ Hima Kohli* who delivered the judgement has been promoted to Supreme Court recently.

Ramesh Patodia
31-08-2021