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M/S. Union Bearings (India) Ltd. vs Sebi

Securities Appellate Tribunal12 February 2021Tarun Agarwala

Ratio decidendi

The rule this decision rests on

A delay in filing an appeal may be condoned where the appellant's explanation is accepted as sufficient, in particular where the appellant only learned of the impugned order late, applied for a copy promptly on learning of it, and filed the appeal immediately after receiving the copy, and where the respondent does not dispute those facts. An order passed without affording the affected party an opportunity of hearing is liable to be quashed, and the matter remitted to the authority to decide afresh after hearing the party, in line with the Tribunal's earlier decision in Divine Multi Media (India) Ltd. v. BSE Ltd., where it was held that an opportunity of hearing is required.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

BEFORE THE SECURITIES APPELLATE TRIBUNALMUMBAI

Date of Decision : 12.02.2021

Misc. Application No. 563 of 2019 And Appeal No. 522 of 2019

M/s. Union Bearings (India) Ltd. Mangal Murti, Ashram Road, Ahmedabad- 380009. ..... Appellant

Versus

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

Mr. Sharath Pai, Advocate for the Appellant. Mr. Tomu Francis, Advocate with Mr. Arka Saha, Advocate i/b Khaitan & Co. for the Respondent.

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

Per : Justice Tarun Agarwala, Presiding Officer (Oral)

1.

The appellant has challenged the order dated June 26, 2018

by which the Delisting Committee of BSE Ltd. has compulsorily 2

delisted the company under Regulation 21 of Securities and

Exchange Board of India (Delisting of Equity Shares) Regulations,

2009 (hereinafter referred to as 'Delisting Regulations'). There is a

delay of 451 days in the filing of the appeal. The ground urged is

that the appellant was never given an opportunity of hearing and the

order was never served upon them and that they only came to know

in August 2019 whereupon they applied for a copy of the order

which was received on August 28, 2019 and immediately thereafter

the present appeal was filed.

2. The aforesaid facts have not been disputed by the respondent.

Considering the aforesaid, the delay has been explained. Cause

shown is sufficient. The delay is condoned. The application is

allowed.

3. We find from the impugned order that no opportunity of

hearing was provided to the appellant before passing of the order. In

M/s. Divine Multi Media (India) Ltd. vs. BSE Ltd. Appeal No. 17 of

2019 decided on March 25, 2019, the Tribunal has held that an

opportunity of hearing is required to be given. Since the same has

not been given, the impugned order cannot be sustained and is

quashed. The appeal is allowed. The matter is remitted to the

Committee again to decide the matter afresh after giving an

opportunity of hearing to the appellant. 3

4. 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 RAJALAKS Digitally signed by RAJALAKSHMI H NAIR

HMI H NAIR 10:43:10 +05'30' Date: 2021.02.15

Justice M. T. Joshi Judicial Member 12.02.2021 PTM

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