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2015 (8) TMI 1401 - HC - Companies LawTrading in the securities of the petitioner no.1-company suspended - SEBI regulations - alternate remedy - Held that:- Section 23L of the Securities Contracts (Regulation) Act,1956 provides an alternative remedy of an appeal before the Securities Appellate Tribunal from the orders of the Stock Exchange. The running of Stock Exchange is an area of specialization requiring expertise and in view thereof the SEBI has been appointed as a Regulator. This is to ensure that dealings in the shares on the Stock Exchange, are not manipulated to the detriment of genuine investors in stock market. The decision taken by the impugned order being an interim order pending investigation is subject not only to the representation to the Stock Exchange but is also subject to appeal to the Securities Appellate Tribunal. Therefore, the submissions urged before us could be urged either in the representation before the Official of the Stock Exchange or before the Securities Appellate Tribunal in an appeal, if they choose to prefer an appeal. The relief which they are seeking from this Court is something which would be available to them by availing of statutory alternative remedy provided to them under the Securities Contracts (Regulation) Act, 1956 or by filing a representation tot he Stock Exchange. Thus, we see no reason to exercise our extraordinary writ jurisdiction in the peculiar facts of this case. So far as the issue of Regulation 21 of the bye-laws of the Bombay Stock Exchange being ultra vires of Article 14 and 19(1)(g) of the Constitution is concerned, the challenge is on the basis that the impugned interim order has been passed without following principles of natural justice etc. Firstly, it must be appreciated that principles of natural justice are not immutable. They necessarily have to yield / be modified to meet different situations. This is only an interim order and the issue of such orders pending further investigation and consideration cannot be faulted as otherwise genuine investors in the Stock Exchange may face ruin. At this stage, we, therefore, refrain from entertaining the challenge to the vires of Regulation 21 as raised by the petitioners.
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