Does an order barred by res judicata remain valid against entities which did not file any appeal against it?

No. As the order suffers from an inherent lack of jurisdiction, being barred by the principle of res judicata and constructive res judicata, the argument that it cannot be invalidated against those who had not chosen to file any appeal cannot stand.

Securities and Exchange Board of India Act, 1992 — ss.11, 11B and 15U(1) — Code of Civil Procedure, 1908 — s.11 — Res judicata and constructive res judicata — Finality of orders — Disgorgement — Restitution — Securities and Exchange Board of India Act, 1992 — s.11B — Fresh order on the same cause of action — Finality — Held: Once an order under Section 11B on the same show-cause notices has attained finality and been fully given effect to, SEBI cannot pass a fresh order on the very same cause of action. Disgorgement was within its ambit and scope at the first instance and, not resorted to then, cannot be revisited without just cause. (¶25, 29) Securities and Exchange Board of India Act, 1992 — s.15U(1) — Applicability of res judicata to SEBI — Held further: Section 15U(1) deals only with the procedure and powers of the Tribunal and does not cover proceedings before SEBI, which cannot claim exemption from the principle of res judicata. These principles bind not merely the parties but the adjudicating authorities, judicial, quasi-judicial or administrative. (¶27, 28) Code of Civil Procedure, 1908 — s.11 — Inherent lack of jurisdiction — Entities which did not appeal — Held further: An order barred by res judicata suffers from an inherent lack of jurisdiction, and cannot be sustained even against entities which did not file any appeal against it. (¶31) Securities and Exchange Board of India Act, 1992 — s.11B — Restitution to investors — Finality of the Tribunal's order — Held further: The compensation claim against SEBI having been negated by an order that attained finality, it was not for the Tribunal to give its own earlier order a different colour contrary to its plain meaning. Disgorgement and restitution directions set aside, as are the exorbitant costs mulcted on SEBI. Appeals allowed in part. (¶31, 33)

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