9911796707
TMI Blog2021 (11) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... pon them to adduce evidence and clarifications in support of their contentions. 2. Petitioner No.1 is a company incorporated under the Companies Act with the object of carrying out business of Collective Investment Scheme (CIS), forming horticulture, floriculture etc. manufacture and sale of agrochemicals and as timber merchants to sell land with or without trees, plants etc. Petitioner No.2 is the Managing Director of petitioner No.1 company. 3. Respondent No.2 Securities & Exchange Board of India issued Provisional Registration Certificate as per Annexure-A on 09.07.2001 to the petitioners with certain conditions as specified in Regulation No.71(1) of the SEBI (Collective Investment Schemes) Regulations, 1999 ('the Regulations' f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeal No.48/2006 making some adverse remarks against the petitioners in para 7 which reads as follows: "7. For the reasons recorded above, the appeal fails and the same is dismissed. The appellant will now wind up the schemes in accordance with the provisions of the Regulations and repay the investors in accordance with the provision of Regulation 73. We make it clear that the appellant will send to its investors fresh information memoranda after getting the same vetted from the Board. As soon as the information memoranda are finalized and sent to the investors, the Board shall release the amount of Rs. 50 lacs lying with it together with interest accrued thereon to the appellant company to be utilized for repayment to the investors. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g in the securities in any manner. 12. The petitioners submitted reply as per Annexure-C dated 29.10.2010. The petitioners issued another letter as per Annexure-D dated 05.02.2011 requesting respondent No.3 not to precipitate the matter. Respondent No.3 sent another show cause notice as per Annexure-E dated 15.02.2011 stating that it has not complied the directions of the SAT and to complete all the formalities and submit a compliance report and submission of information memorandum failing which it shall go ahead with initiation of action against the petitioners. 13. The petitioners filed W.P.Nos.9699-9700/2011 (GM-RES) seeking to quash Annexure-E the show cause notice dated 15.02.2011. This Court vide order as per Annexure-F dated 18.11. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e petitioners fail to appear before WTM on the said date of hearing, it will be presumed that they have nothing further to state and respondent No.2 may proceed further in the matter. 17. The petitioners seek quashing of those notices under Annexures-H & H1 on the following grounds: (i) Such notices amount to violation of the order of this Court in W.P.Nos.9699-9700/2011; (ii) The notices smack mala fides; (iii) The respondents instead of considering the earlier replies sent by the petitioners to the show cause notice have initiated parallel proceedings in issuing Annexures-H & H1 further show cause notices. Thereby trying to ignore the order of this Court in the above said proceedings; 18. Respondent Nos.2 to 4 oppose the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rfere with economic and fiscal matters in writ jurisdiction. 22. In support of his contentions, he relies upon the following judgments: (i) Special Director v. Mohd.Ghulam Ghouse (2004) 3 SCC 440 (ii) Union of India v. Kunisetty Satyanarayana (2006) 12 SCC 28 (iii) Ministry of Defence v. Prabhash Chandra Mirdha (2012) 11 SCC 565 (iv) Securities Exchange Board of India v. Mukkaram Jan WA No.270/2021 DD 09.04.2021 (v) Bajaj Hindustan Ltd. vs. Sir Shadi Lal Enterprises Ltd. (2011) 1 SCC 640 (vi) Peerless General Finance and Investment Co. Ltd. v. Reserve Bank of India (1992) 2 SCC 343. 23. Sri.Madanan Pillai R, CGSC for respondent No.1 adopts the arguments addressed by the learned counsel for respondent Nos.2 to 4. 24. As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the charges leveled against them in the show cause notice issued to them under Section 11B of the Act read with Regulations 65 and 73 of the Regulations. 27. Annexures-H and H1 contain only reference to Annexure-B the show cause notice dated 05.10.2010 issued to them. Annexure-B refers to the complaints received from the investors against the petitioners for nonpayment of their money. Annexure-B was issued pursuant to the order of SAT dated 21.10.2008 in Appeal No.48/2006 for submission of information memorandum to respondent No.2 for vetting. 28. The order of SAT in Appeal No.48/2006 dated 21.10.2008 is placed on record. That goes to show that the SAT condemned the conduct of the petitioners on several grounds. It was observed that ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
