Jainex Aamcol Ltd. & Ors. vs Sebi

BEFORE THE SECURITIES APPELLATE TRIBUNAL MUMBAI Date of Decision: 17.11.2022 Misc. Application No.1283 of 2022 And Misc. Application No.1284 of 2022 And Misc. Application No.1285 of 2022 And Appeal No.876 of 2022 1. Jainex Aamcol Ltd. 405 & 406, 4th Floor, Sharda Chambers, 15, Sir Vitthaldas Thackersey Marg New Marine Line, Mumbai 400 020. 2. Mr. B.S. Dugar A-11, Meherina Apartments Nepeansea Road, Mumbai 400 062. ...Appellants Versus 1. Bombay Stock Exchange of India Ltd. 25th Floor, P.J. Towers, Dalal Street, Mumbai - 400 001 State of Maharashtra. 2. Securities and Exchange Board of India SEBI Bhavan, G Block, Bandra Kurla Complex, Mumbai - 400051. 3. Ministry of Corporate Affairs Ministry of Finance, Department of Revenue, 2 Room No.46, North Block, New Delhi-11010. ...Respondents Mr. Sagar Divekar, Advocate with Advocate Mr. Abhimanyu Mhapankar, Advocate for the Respondent No.1. Mr. Manish Chhangani, Advocate with Ms. Samreen Fatima and Mr. Sumit Yadav, Advocates i/b. The Law Point for the Respondent No.2 (SEBI). CORAM: Justice Tarun Agarwala, Presiding Officer Ms. Meera Swarup, Technical Member Per: Justice Tarun Agarwala, Presiding Officer (Oral) 1. For the reasons stated in the application, the delay in the filing of the appeal is condoned.

The application is allowed. 2. The present appeal has been filed against the order dated 24th May, 2022, whereby the Adjudicating Officer has imposed a fine totalling Rs.10,30,140 for non-appointment of a Company Secretary for the quarters ended from December, 2018 to December, 2021. 3. Since the amount has not been paid the demat account of the promoters has been frozen by an order dated 24th May, 2022 and the review order dated 3rd June, 2022. 4. In Kesar Petroproducts Ltd. vs. BSE, Appeal no.432 of 2022 decided on 10th August, 2022, in similar circumstances for non-compliance of certain provisions of LODR Regulations during Covid-19 pandemic period this Tribunal observed: 5. The said decision, in our opinion, is applicable also in the instant case. We are of the opinion that the appellant was entitled for relief and for waiver of the fine imposed during the pandemic period. Consequently, the imposition of fine as per the impugned communication cannot be allowed to stand and is set aside. The matter is remitted to the respondent to pass a fresh order after taking into consideration the decision of Kesar Petroproducts Ltd. vs. BSE.

The appeal is allowed. The attachment order, if any, is set aside. All the misc. applications are accordingly disposed of. 6. 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. Certified copy of this order is also 6 available from the Registry on payment of usual charges. Justice Tarun Agarwala Presiding Officer Ms. Meera Swarup Technical Member RAJALAK Digitally signed by SHMI 17.11.2022 RAJALAKSHMI HARISH HARISH NAIR Date: 2022.11.23 RHN NAIR 18:26:23 +05'30'