Gangotri Textiles Limited & Ors. vs Sebi

Date of Decision: 29.08.2019

Appeal No. 457 of 2018

1.

Gangotri Textiles Limited 25-A, Venkatachalam Co-op, Colony, R.S. Puram, Coimbatore- 641 002

2. Manoj Kumar Tiberewal 401, Belleza Apartment, 258 Alagesan Road, Saibaba Colony Post, Coimbatore- 641 011, Tamilnadu

3. Anita Tibrewal 401, Belleza Apartment, 258 Alagesan Road, Saibaba Colony Post, Coimbatore- 641 011, Tamilnadu

4. Mayank Tibrewal 401, Belleza Apartment, 258 Alagesan Road, Saibaba Colony Post, Coimbatore- 641 011, Tamilnadu

5. Umang Tibrewal 401, Belleza Apartment, 258 Alagesan Road, Saibaba Colony Post, Coimbatore- 641 011, Tamilnadu ...Appellants

Versus

National Stock Exchange of India Limited Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra Mumbai - 400 051 ...Respondent 2

Ms. Rishika Harish, Advocate with Ms. Nirali Mehta, Advocate i/b Mindspright Legal for Appellants.

Mr. Rashid Boatwalla, Advocate with Ms. Shreya Anuwal, Advocate i/b Manilal Kher Ambalal & Co. for the Respondent.

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

Per: Justice Tarun Agarwala (Oral)

1. Against the order dated July 05, 2017 and March 26, 2018

the present appeal has been filed. By order of July 05, 2017 the

trading in the equity shares of the company was suspended till

such time the company complied with Securities and Exchange

Board of India (Listing Obligations and Disclosure

Requirements) Regulations, 2015 ("LODR Regulations, 2015"

for convenience) and paid the fine. By order dated March 26,

2018 the appellant was imposed a fine of ` 44,53,073/- for

violation of Clause 41 of the Listing Agreement and

` 16,48,073/- for violation of Regulation 33 of the LODR

Regulations, 2015.

2. We have heard Ms. Rishika Harish the learned counsel for

the appellants and Shri Rashid Boatwalla the learned counsel for

the respondent. The contention of the learned counsel for the

appellants was that the amount is excessive and not in 3

accordance with the circulars in as much as the appellants

admittedly did not supply the information within the stipulated

period but eventually after a delay had supplied the information

to the Stock Exchange. It was submitted that the information

under Clause 41 of the Listing Agreement and under Regulation

33 of the LODR Regulations, 2015 was supplied on September

08, 2017 but the fine has been calculated upto March 26, 2018

which is wholly incorrect and arbitrary.

3. In this regard, the learned counsel for the respondent

Shri Rashid Boatwalla was directed to seek instructions. Upon

instructions the learned counsel stated that necessary

compliance was eventually made on September 08, 2017 and,

therefore, the fine under Clause 41 of the Listing Agreement

was recalculated and now ` 34,73,073/- is payable and under

Regulation 33 of the LODR Regulations, 2015 the fine payable

is ` 6,68,073/-

4. In the light of the aforesaid, since admittedly the Listing

Agreement and the LODR Regulations, 2015 was not complied

by the appellants the fine is required to be paid.

5. For the reasons stated aforesaid, the impugned order dated

March 26, 2018 is modified. The penalty of ` 44,53,073/- under 4

Clause 41 of the Listing Agreement is reduced to ` 34,73,073/-

and penalty of ` 16,48,073/- for violation of Regulation 33 of

the LODR Regulations, 2015 is reduced to ` 6,68,073/-. The

aforesaid amounts shall be paid by the appellants within four

weeks from today. The appeal is partly allowed. Once the

amount is paid the order dated July 05, 2017 would stand

withdrawn. However, it would be open for the respondent to

pass a fresh order in accordance with law if there is any other

violation of the LODR Regulations or the Listing Agreement.

Sd/-

Justice Tarun Agarwala Presiding Officer

Sd/-

Justice M. T. Joshi Judicial Member 29.08.2019 Prepared & Compared By: PK