Mother Mira Industries Ltd. vs Sebi

BEFORE THE SECURITIES APPELLATE TRIBUNAL MUMBAI Date of Decision: 13/04/2017

Misc. Application No.107 of 2017 And Appeal No.93 of 2017

Mother Mira Industries Ltd. having office at South India Film Chamber of Commerce Phase I, 3rd Floor, No.605 & 606, T.R. Sundaram Avenue, 1000 Lights Chennai - 600 006. ... Appellant

Versus

BSE Limited having its address at Floor 25, P.J. Towers, Dalal Street, Mumbai - 400 001. ... Respondent

Mr. Rajesh Khandelwal, Advocate i/b Juris Link for the Appellant.

Mr. P.N. Modi, Senior Advocate a/w Mr. Ajay Khaire, Advocate i/b The Law Point for the Respondent.

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

Per : Justice J.P. Devadhar (Oral)

Misc. Application No.107 of 2017 in Appeal No.93 of 2017:-

1.

By this Misc. Application, Applicant/Appellant seeks

condonation of delay of 138 days in filing the Appeal. For the reasons

stated in the application, the delay is condoned. Misc. Application is

disposed of accordingly.

2

Appeal No.93 of 2017:-

1. Appellant is aggrieved by the communication of the respondent

("BSE" for convenience) dated 16/8/2016. By the said communication,

the appellant has been compulsorily delisted from the Exchange under

the Securities and Exchange Board of India (Delisting of Equity Shares)

Regulations, 2009 ("Delisting Regulations" for convenience) with effect

from 17/8/2016.

2. Counsel for the appellant submitted that the above

communication of BSE is bad-in-law, because, firstly, the decision of

BSE contained in the said communication is taken without giving an

opportunity of hearing to the appellant and hence in violation of the

principles of natural justice. Secondly, it is contended that the show-

cause notice dated 20/5/2016 was sent to the old address and not to the

new address of the appellant and therefore, impugned decision of BSE

is liable to be quashed and set aside.

3. We see no merit in the above contentions.

4. Admittedly trading in the equity shares of the appellant-

company listed on BSE in the year 2000 were suspended on 01/10/2002.

As the appellant-company failed to take steps for revocation of

suspension, BSE issued a circular on 12/02/2016, detailing the process to

be followed for revoking the suspension of trading in the securities.

However, no steps were taken.

3

5. Show-cause notice issued by BSE on 20/5/2016 to the appellant at

the last known address in the Exchange records, returned undelivered.

Counsel for the appellant fairly stated that the change in the address of

the appellant was not intimated to BSE.

6. In these circumstances, in our opinion, no fault can be found with

the decision of BSE in compulsorily delisting the appellant under the

Delisting Regulations, especially when the appellant failed to seek

revocation of suspension of trading in its securities which has been in

operation from 01/10/2002.

7. For the aforesaid reasons, we see no merit in the appeal and the

same is hereby dismissed with no order as to costs.

Sd/-

Justice J.P. Devadhar Presiding Officer

Sd/-

Jog Singh Member

Sd/-

Dr. C.K.G. Nair Member

13/04/2017 prepared & compared by-dg