Kumar Autocast Limited vs Sebi

Date of Decision: 7.6.2017

Misc. Application No.53 of 2017 And Appeal No.58 of 2017

Kumar Autocast Limited C-179, Focal Point, Phase VI, Ludhiana - 141010 ..... Appellant

Versus

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

Mr. Kamal Ahuja, Advocate for the Appellant.

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

CORAM : Justice J.P. Devadhar, Presiding Officer Dr. C.K.G. Nair, Member

Per : Justice J.P. Devadhar (Oral)

Misc. Application No.53 of 2017

This Miscellaneous Application is taken out seeking condonation of

109 days delay in filing this appeal. For the reasons stated in the Misc.

Application No.53 of 2017 the delay is condoned. The Misc. Application is

disposed of accordingly.

Appeal No.58 of 2017

1.

The appellant is aggrieved by the communication issued by the

National Stock Exchange of India Limited ('NSE' for short) on 8th April,

2016 whereby the application made by the appellant on 28th March, 2016

for listing its shares on NSE has been rejected. 2

2. Reasons set out in the impugned communication for rejecting the

application of the appellant are that the appellant company does not meet

the following eligibility criteria prescribed by the Exchange :

"The paid-up equity capital of the applicant company shall not be

less than 5 crores and the net worth of the applicant company shall

not be less than 10 crores."

3. Counsel for the appellant submitted that the impugned communication

does not set out the circular number and the date from which the aforesaid

eligibility criteria has been prescribed by the Exchange. It is further

submitted by the counsel for the appellant that although NSE claims that

the aforesaid eligibility criteria have been prescribed vide Circular no.

212/2016 dated 17th March, 2016, there is nothing on record to suggest that

the said circular was published any time prior to the impugned

communication issued by NSE. In these circumstances, it is submitted that

the impugned communication be quashed and NSE be directed to list the

shares of the appellant company on NSE.

4. We see no merit in the above contentions.

5. Argument of the appellant that from 17.3.2016 till 8.4.2016 the

Circular no.212/2016 dated 17.3.2016 was not displayed on the NSE

website is not established by any cogent evidence. In the absence of any

material to establish that the circular dated 17.3.2016 was not displayed on

the website till 8.4.2016, we see no reason to entertain the plea of the

appellant

6. Moreover, an affidavit is filed before us on behalf of the NSE

wherein it is categorically stated that the Circular no.212 of 2016 dated 17th

March, 2016 was in fact uploaded on the NSE website on the very same

day. Various other documents are annexed to the said affidavit filed on

behalf of NSE to demonstrate that the above circular dated 17.3.2016 was

in fact displayed on the NSE website on 17.3.2016 itself. 3

7. We see no reason to disbelieve the statement made on oath by NSE.

In the absence of any material to disbelieve the factual assertion made by

NSE, we see no reason to entertain the appeal

8. In the result, the appeal is dismissed with no order as to costs. If the

appellant complies with the eligibility criteria prescribed by NSE and

makes a fresh application seeking listing of shares, then NSE shall consider

the same in accordance with law and pass appropriate order as

expeditiously as possible.

Sd/-

Justice J. P. Devadhar Presiding Officer

Sd/-

Dr. C.K.G.Nair Member

7.6.2017 Prepared and compared by RHN