Adorable Agrotech Ltd. vs Sebi

Date of Decision : 21.09.2017

Misc. Application No. 305 of 2016 And Appeal No. 371 of 2016

Adorable Agrotech Ltd. 195, Rashbehari Avenue, 3rd Floor, Kolkata - 700019. ...Appellant

Versus

1.

Securities and Exchange Board of India SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East),

2. Recovery Officer, Eastern Regional Office, L&T Chamber, 16, Camac Street, Kolkata - 700017. ...Respondent

Mr. Ranit Basu, Advocate i/b Talukder & Co. for the Appellant.

Mr. Mustafa Doctor, Senior Advocate with Mr. Tomu Francis and Mr. Vivek Shah, Advocates for the Respondent.

CORAM : Justice J.P. Devadhar, Presiding Officer Dr. C.K.G. Nair, Member

Per : J.P. Devadhar (Oral)

Misc. Application No. 305 of 2016:

By this Misc. Application appellant seeks condonation of 249 days

delay in filing this appeal. For the reasons stated in the Misc. Application,

delay is condoned. Misc. Application stands disposed of accordingly.

2 Appeal No. 371 of 2016:

A

1. Appellant is aggrieved by the order passed by the Whole Time

Member ('WTM' for short) of Securities and Exchange Board of India

('SEBI' for short) on October 1, 2015 whereby the appellant and its

directors were directed to refund jointly and severally to the investors the

money collected by the appellant through issuance of Redeemable

Preference Shares within the time stipulated therein, with an interest @ 15%

per annum from the date when the repayments became due till the date of

actual payment.

2. In the Misc. Application filed by the appellant seeking condonation

of delay in filing the appeal, the appellant has specifically stated that the

company has intention to comply with the order but due to injunction

granted by Regulatory Authorities and also by the Hon'ble High Court at

Calcutta, the appellant is not in a position to comply with the impugned

order passed by SEBI. Subsequently, in para 6.5 of the affidavit in

re-joinder the appellant has stated on oath that no amount is due and payable

to any investors as the entire amount due to the investors have already been

refunded by the appellant.

3. Thus, from the statements made by the appellant on oath, which is to

be verified by SEBI, it is evident that the impugned order has already been

implemented by the appellant and as such the appeal has become

infructuous.

4. In these circumstances, we direct the appellant to make a

representation to SEBI setting out in detail the names of the investors, the

quantum, the mode and the manner in which refunds have been made to the 3

investors, within a period of 2 weeks from today. SEBI shall consider the

said representation and pass appropriate order thereon as it deems fit and

proper.

5. It is made clear that if the appellant fails to make a representation

within a period of two weeks from today or if the statement made by the

appellant that all amounts due to the investors have already been paid to the

investors is found to be false, then apart from implementing the impugned

order it would be open to SEBI to initiate criminal proceedings against the

appellant for making false statement on oath.

6. Appellant is also directed to furnish list of its assets and assets of its

directors to SEBI within a period of 2 weeks from today.

7. Appeal is disposed of in the aforesaid terms with no order as to costs.

Sd/-

Justice J.P. Devadhar Presiding Officer

Sd/-

Dr. C.K.G. Nair Member 21.09.2017 Prepared and compared by: msb