The Role Of High Courts In Investor Protection In India
- IJLLR Journal
- 1 hour ago
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S. Rahul Aaditya, Tamil Nadu National Law University
ABSTRACT
This paper examines the role of High Courts in investor protection in India, particularly in light of evolving securities regulation and tribunalization. Despite the establishment of specialized forums like the Securities Appellate Tribunal (SAT) and the direct appellate jurisdiction of the Supreme Court under Section 15Z of the SEBI Act, the study investigates whether High Courts continue to play a meaningful role in safeguarding investor interests. It explores how High Courts exercise their constitutional powers under Articles 226 and 227 to address procedural arbitrariness, regulatory overreach, and constitutional violations by bodies such as SEBI.
The research adopts a doctrinal methodology, analyzing statutes, regulations, judicial precedents, and scholarly literature. It reviews key provisions of the SEBI Act, including Sections 26A and 26C, which relate to the appointment and appellate oversight of Special Courts. The paper also evaluates landmark case laws—such as Pradeep Mehta v. Union of India and Manoj Gokulchand Seksaria v. State of Maharashtra —to illustrate how High Courts have intervened to uphold principles of natural justice, proportionality, and due process in regulatory enforcement actions.
Findings reveal that while tribunalization has streamlined dispute resolution in securities matters, it has not rendered High Courts obsolete. They remain critical in ensuring regulatory accountability, protecting fundamental rights under Articles 14, 21, and 300A, and reviewing the legality of SEBI circulars and actions. The study concludes that the High Courts continue to serve as vital guardians of investor rights, balancing regulatory efficiency with constitutional fairness and judicial oversight in India’s evolving financial markets.
