Animesh Chowdhury vs Sebi
- CitationAppeal No.58 of 2018
Ratio decidendi
The rule this decision rests on
Where a director is held jointly and severally liable with the company for repayment of investor monies, the recovery of those monies from the director's assets is to be made only after the company's assets have first been sold and found insufficient to satisfy the amounts due to investors, the attachment of the director's assets continuing in force until the entire amount is repaid.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Date of Decision: 19.3.2018
Appeal No.58 of 2018
Animesh Chowdhury L1/10A, Vidyasagar Colony, Kolkata 700047. ..... Appellant
Versus
1.
Securities and Exchange Board of India
2. Madhabi Puri Buch, Whole Time Member, SEBI SEBI Bhawan, Block C4-A, "G" Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051. ... Respondents
Mr. Anirban Ray, Advocate i/b.Arup Nath Bhattacharyya, Advocate for the Appellant.
Mr. Mustafa S. Doctor, Senior Advocate with Mr. Shantanu Mitra and Mr.Anubhav Ghosh, Advocates i/b. Desai and Diwanji for the Respondent.
CORAM : Justice J. P. Devadhar, Presiding Officer Dr. C.K.G. Nair, Member
Per : Justice J. P. Devadhar (Oral)
1. This appeal is filed to challenge the order passed by the Whole Time
Member ('WTM' for short) of Securities and Exchange Board of India on
28.11.2017. By the said order appellant who was a Director of Ravi Kiran
Realty India Ltd. (company for convenience) is also held jointly and severally
liable alongwith the company and other directors to repay the amount collected
from the investors with interest as more particularly set out therein.
2. Counsel for the appellant fairly states that the issues raised in this appeal
are covered against the appellant by the decision of this Tribunal in case of
Manoj Agarwal vs. SEBI (Appeal No.66 of 2016 decided on 14.7.2017). However, he submitted that in view of the decision of this Tribunal in case of 2
in Basir Uddin Khan vs. SEBI (Appeal no.280 of 2016 decided on 17.10.2017)
the assets of the appellant attached by SEBI may be utilized only if the assets of
the company are insufficient to repay the amounts due to the investors. It is
submitted that the plant belonging to the company is situated on 9 Acres land
and if that plant/land is sold, entire amount due to the investors can be repaid.
3. While making it clear that the appellant is jointly and severally liable to
repay the amounts due to the investors along with the company and other
directors, in the facts of present case, we direct SEBI to sell the assets of the
company forthwith and thereafter sell the assets belonging to the appellant only
if the amounts realized on sale of assets belonging to the company are not
sufficient to repay the amounts due to the investors.
4. It is made clear that attachment levied on the assets of the appellant shall
continue to be in force till the entire amount due to the investors is repaid.
5. 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
19.3.2018 Prepared and compared by RHN
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