Addendum to Interim Order dated March 17, 2020 in the matter of Ricoh India Ltd.
- Order No.WTM/GM/IVD/80A/2019-20
Ratio decidendi
The rule this decision rests on
Where a company is undergoing Corporate Insolvency Resolution Process and a moratorium under section 14 of the Insolvency and Bankruptcy Code, 2016 is in force, directions issued against that company do not take effect while the moratorium subsists. Those directions continue to operate against the individual respondent alone. Banks and depositories are to enforce the directions only against the individual's bank accounts and demat holdings, and not against the company, for as long as the moratorium lasts.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Addendum to the Interim Order No. WTM/GM/IVD/80/2019-20 dated March 17, 2020 in the matter of Ricoh India Limited.
1. SEBI passed an interim order having reference no. WTM/GM/IVD/80/2019-20 dated March 17, 2020 in the matter of Ricoh India Limited against Fourth Dimension Solutions Limited (‘FDSL’) and Amalendu Mukherjee, the Managing Director of FDSL, impounding a sum of INR 2,30,34,010/- from them jointly and severally, for violation of provisions of the SEBI Act, 1992 read with the SEBI (Prohibition of Insider Trading) Regulations, 2015.
2. Subsequent to the issuance of the Order, vide letter dated March 18, 2020, it has been brought to my notice by Ms. Pooja Bahry, Resolution Professional appointed by NCLT, that FDSL is undergoing Corporate Insolvency Resolution Process (‘CIRP’) under the Insolvency and Bankruptcy Code, 2016 (‘IBC’) since July 26, 2019 and a moratorium under section 14 of the IBC is in force.
3. In view of the above, in the said Order, in continuation of para 7.4, the following shall be added,- “7.4(a) As FDSL is undergoing CIRP and a moratorium under section 14 of the IBC is in place, the directions issued in respect of FDSL shall not come into effect as long as the moratorium is in force. Accordingly, the directions in paras 7.1, 7.2, 7.3 and 7.4 shall operate only against Amalendu Mukherjee during such time. Banks and Depositories shall enforce the directions in paras 7.2 and 7.3 only against the bank accounts and demat holdings of Amalendu Mukherjee and not against FDSL during this period.”
4. The addendum shall be read as part of the Order dated March 17, 2020.
Order in the matter of Ricoh India Limited
5. A copy of this Order shall be forwarded to the Stock Exchanges, Depositories, Registrar and Share Transfer Agents and Banks to ensure necessary compliance.
Place: Mumbai G. MAHALINGAM Date: March 30, 2020 WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
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