Dhara Technosystem Llp vs Sebi

Date of Decision : 27.04.2021

Misc. Application No. 255 of 2021 (Exemption from filing certified copy) And Misc. Application No. 484 of 2021 (Delay Application) And Appeal No. 201 of 2021

Dhara Technosystem LLP 11/92, Motilal Nagar 1, Near M. N. English School, Goregaon, Mumbai - 400 104. ..... Appellant

Versus

1.

Securities & Exchange Board of India SEBI Bhavan, Plot No. C-4A, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051.

2. National Stock Exchange of India Ltd. Exchange Plaza, Block G, C 1, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051.

3. BSE Ltd.

Floor 25, P. J. Towers, Dalal Street, Mumbai - 400 001.

4. Guiness Securities Ltd.

18, Deshapriya Park Road, Kolkata - 700026. ... Respondents 2

With Misc. Application No. 256 of 2021 (Exemption from filing certified copy) And Misc. Application No. 485 of 2021 (Delay Application) And Appeal No. 202 of 2021

Palak B. Shah 301, Gada Residency, N. S. 4th Road, Opp. Coopar Hospital, Juhu Scheme, Vile Parle (West), Mumbai - 400 056. ..... Appellant

Versus

1. Securities & Exchange Board of India SEBI Bhavan, Plot No. C-4A, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051.

2. National Stock Exchange of India Ltd. Exchange Plaza, Block G, C 1, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051.

3. BSE Ltd.

Floor 25, P. J. Towers, Dalal Street, Mumbai - 400 001.

4. Guiness Securities Ltd.

18, Deshapriya Park Road, Kolkata - 700026. ... Respondents

Mr. Sanjeev Kumar Choudhary, Advocate with Mr. Amit Gupta, Advocate i/b Samyak Law Firm for the Appellants. 3

Mr. Abhiraj Arora, Advocate with Mr. Karthik Narayan, Ms. Rashi Dalmia, Advocates i/b ELP for the Respondent Nos. 1.

Mr. Vishal Kanade, Advocate with Mr. Rashid Boatwalla, Mr. Aditya Vyas, Advocates i/b MKA & Co. for the Respondent Nos. 2.

Mr. Anubhav Ghosh, Advocate with Mr. Ravishekhar Pandey, Advocate i/b the Law Point for the Respondent Nos. 3.

None for the Respondent Nos. 4.

CORAM : Justice Tarun Agarwala, Presiding Officer Justice M. T. Joshi, Judicial Member

Per : Justice Tarun Agarwala, Presiding Officer (Oral)

1. Two separate appeals have been filed but the issue is the

same and, therefore, are being dealt with together. For facility, the

facts stated in the appeal of Dhara Technosystem LLP is being taken

into consideration.

2. The applications for exemption from filing a certified copy of

the impugned order are allowed.

3. There is a delay in the filing of the appeals. For the reasons

stated in the applications, the delay is condoned. Misc. Applications

are allowed.

4

4. The appellant has a trading account with respondent Nos. 4,

namely, Guiness Securities Ltd. The contention of the appellant is

that it has to receive certain shares from the respondent Nos. 4 as

depicted in paragraph No. 5.4 of the memo of appeal. It is further

contended that the respondent Nos. 4 without any authority of law is

retaining the shares in its depository account. The appellant made a

complaint before Securities and Exchange Board of India (hereinafter

referred to as 'SEBI') on December 18, 2020 on the Securities and

Exchange Board of India Complaint Redressal System (SCORES)

platform which was disposed of by an order dated January 4, 2021.

The appellant thereafter filed the present appeal praying that

respondent Nos. 4 be directed to release the shares as depicted in

paragraph No. 5.4 of the memo of appeal or in the alternative direct

SEBI to refer the claim of the appellant to the defaulter's committee.

The appellant has also challenged the ex-parte ad-interim order dated

December 19, 2018 as confirmed by order dated July 31, 2019

whereby restraint orders were passed against the respondent Nos. 4.

5. The main contention of the appellant is that once the

complaint is filed and is not resolved within 15 days, it is mandatory

for the stock exchange to refer the complaint for redressal to a

committee as per the circular dated September 26, 2013. 5

6. Similar is the case in the appeal of Palak B. Shah.

7. The controversy involved in the present case is squarely

covered by a decision of this Tribunal in Appeal No. 288 of 2020

and other connected appeals Rakesh Bhatia and Anr. Vs. National

Stock Exchange of India Ltd. and Ors. decided on January 19,

2021, wherein the Tribunal held that where broker is declared a

defaulter and his terminals are disabled, then the complaint cannot be

referred for redressal to IGRP in view of the circular dated July 1,

2020 and that the only option available is to file a claim under the

bye-laws of the stock exchange.

8. In view of the aforesaid, the appellants are directed to file a

claim before the stock exchange under its bye-laws. We have been

informed that the appellant Dhara Technosystem LLP has already

filed a claim which is pending consideration before the stock

exchange.

9. For the reasons stated aforesaid, both the appeals are

disposed of with the direction that the appellant Dhara Tecnosystem

LLP will pursue its claim application filed before the stock exchange

which is pending consideration. If no claim has been filed by the

appellant Palak B Shah, then it is open to the appellant to file a claim 6

before the stock exchange under its bye-laws. If it is filed, the same

would be dealt with in accordance with law.

10. The present matter was heard through video conference due

to Covid-19 pandemic. At this stage it is not possible to sign a copy

of this order nor a certified copy of this order could be issued by the

Registry. In these circumstances, 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.

Parties will act on production of a digitally signed copy sent by fax

and/or email.

Justice Tarun Agarwala Presiding Officer

Justice M. T. Joshi Judicial Member RAJALA Digitally signed 27.04.2021 by

KSHMI NAIR RAJALAKSHMI H

PTM Date: 2021.04.30 H NAIR 19:43:56 +05'30'