Blue Pearl Texspin Limited vs Sebi
- CitationAppeal No. 279 of 2022
Ratio decidendi
The rule this decision rests on
A penalty under Section 23E of the Securities Contracts (Regulation) Act, 1956 cannot be imposed for a breach of the Listing Agreement or of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as those instruments do not fall within the scope of that provision; a penalty imposed on that footing is therefore unsustainable and must be quashed.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Date of Decision : 20.01.2023
Misc. Application No. 745 of 2022 And Appeal No. 279 of 2022
Blue Pearl Texspin Limited Office No. 32, Vyapar Bhavan, 49, P.D. Mello Road, Mumbai - 400 009. .....Appellant
Versus
Securities and Exchange Board of India SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. ... Respondent
Mr. Prakash Shah, Advocate with Mr. Kushal Shah, CA i/b Prakash Shah and Associates for the Appellant.
Mr. Suraj Chaudhary, Advocate with Mr. Mridul Sharma and Mr. Atul Umekar, Advocates i/b MS Legal for the Respondent.
CORAM : Justice Tarun Agarwala, Presiding Officer Ms. Meera Swarup, Technical Member
Per : Justice Tarun Agarwala, Presiding Officer (Oral)
1.
The present appeal is filed against the order dated
April 27, 2022 wherein the penalty of Rs. 5 lakh has been 2
imposed upon the appellant under Section 23E of the
Securities Contracts (Regulation) Act, 1956 ('SCRA' for
short) for violation of SEBI Circular dated June 17, 2011 and
Circular dated September 30, 2011 and Regulation 31 of
SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 ('LODR Regulations' for short)
2. A show cause notice alleged that the appellant is liable
for penalty under Section 23E of the SCRA for violation of
the Circulars and Regulation 31(3) of the LODR Regulations.
3. In Suzlon Energy Limited & Anr. vs SEBI in Appeal
no. 201 of 2018 decided on May 3, 2021 this Tribunal held
that Section 23E of the SCRA is not applicable for violation
of the Listing Agreement and / or LODR Regulations. This
decision is squarely applicable in the instant case.
4. In view of the aforesaid, the impugned order insofar as
the appellant is concerned cannot be sustained and is quashed.
The appeal is allowed.
5. This order will be digitally signed by the Private
Secretary on behalf of the bench and all concerned parties are
directed to act on the digitally signed copy of this order. 3
Certified copy of this order is also available from the Registry
on payment of usual charges.
Justice Tarun Agarwala Presiding Officer
Ms. Meera Swarup Technical Member 20.01.2023 MADHUKAR SHAMRAO Digitally signed by MADHUKAR SHAMRAO BHALBAR
msb BHALBAR Date: 2023.01.20 17:20:53 +05'30'
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