Order in respect of (1) Shree Ambeshwar Paper Mills Limited and its directors viz. (2) Mr. Manoj Bherushankar Dave (3) Mr. Shantilal Bhikhalal Dave, (4) Mr. Dharamdutt Vishweswar Trivedi and (5) Mr. Mohanlal Jeshankar Trivedi.
- Order No.WTM/RKA/EFD/DRA-II/52/2016
Ratio decidendi
The rule this decision rests on
Where the company against whom a show cause notice is proposed under section 11B has already been ordered to be wound up before the notice issues, and the investor complaints underlying the proceedings have been closed before the notice is served, issuing and serving the notice is futile, and no direction under section 11B can be issued on it, so the notice is disposed of. Where a noticee has died before the show cause notice could be served on him, and the complaints that founded the proceedings have already been treated as closed, the continuation of proceedings against him is futile and no section 11B direction survives against him.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
WTM/RKA/EFD/DRA-II/ 52/2016
BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA ORDER Under section 11B of the Securities and Exchange Board of India Act, 1992
In respect of (1) Shree Ambeshwar Paper Mills Limited and its directors viz. (2) Mr. Manoj Bherushankar Dave (3) Mr. Shantilal Bhikhalal Dave, (4) Mr. Dharamdutt Vishweswar Trivedi and (5) Mr. Mohanlal Jeshankar Trivedi 1. Shree Ambeshwar Paper Mills Limited is a listed company having its registered office at Shop No. 82, 4th Lane, Ghadiyal Galli, Mangaldas Market, Mumbai. Securities and Exchange Board of India (SEBI) observed that Shree Ambeshwar Paper Mills Limited had failed to redress the three investor grievances. Further it had not obtained SEBI Complaints Redress System (SCORES) authentication within time stipulated in SEBI circular no. CIR/OIAE/1/2012 dated August 13, 2012 whereby SEBI had directed all the listed companies to obtain SCORES authentication by September 14, 2012 and to take appropriate necessary steps within seven days of receipt of complaints through SCORES. Accordingly, SEBI sent a letter dated February 15, 2013, to the Managing Director of Shree Ambeshwar Paper Mills Limited, drawing his attention to the aforesaid Circular and advising him to resolve the pending grievances at the earliest. The said letter was returned undelivered. 2. SEBI issued Show Cause Notices (SCNs) dated March 28, 2013 and April 17, 2013 to Shree Ambeshwar Paper Mills Limited and its directors viz., Mr. Manoj Bherushankar Dave, Mr. Shantilal Bhikhalal Dave, Mr. Dharamdutt Vishweswar Trivedi and Mr. Mohanlal Jeshankar Trivedi, respectively calling upon them to show cause as to why suitable directions including direction to restrain them from accessing the securities market for a specified period should not be issued against them under section 11B of the SEBI Act. However, the SCNs remained unserved. 3. Vide its letters dated May 06, 2013, July 15, 2003 and July 19,2003, the company informed SEBI about its repeated efforts taken by it for redressal of the aforesaid 3 investor complaints and obtaining SCORES authentication. Further, Mr. Jayant D Trivedi vide his undated letter, received by SEBI on March 2014, attaching a copy of death certificate, informed that Mr. Dharamdutt Vishweswar Trivedi had died on December 01, 2013.
4. While the SCNs were yet to be served as aforesaid, the Registrar of Companies( RoC), Mumbai vide letter dated November 17, 2014, has, inter alia, confirmed to SEBI that Shree Ambeshwar
In the matter of Shree Ambeshwar Paper Mills Limited
Paper Mills Limited is “Under Liquidation” and has been ordered to be wound up by an Order dated July 18, 2012 in Company Petition 70 of 2012. In view of this confirmation from RoC, SEBI treated the aforesaid investor complaints as closed and disposed them of accordingly. Despite such disposal of complaints, SEBI served the SCNs dated March 28, 2013 and April 17, 2013 through affixture on April 02, 2016 and thereafter, the matter was brought before me for granting of personal hearing to the noticees. No appearance was made on behalf of any of the noticees on Scheduled date of hearing on May 10, 2016. 5. I note that by an Order dated July 18, 2012 the company had been ordered to be wound up much before the SCNs were even proposed. Further, one of the noticees viz; Mr. Dharamdutt V. Trivedi had died on December 01, 2013 before the SCN dated April 17, 2013 could be served upon him. The investor complaints that were cause of action in the matter had already been treated as closed and disposed of even before the SCNs were served on the noticees through substituted service on April 02, 2016. Considering these facts and circumstances, I am of the view that issuance and service of SCNs as above was a futile exercise. 6. I, therefore, am of the view that nothing survives for issuance of any issue any direction under section 11B of the SEBI Act, 1992, as contemplated in the SCNs issued in the matter. The SCNs are accordingly disposed of.
Sd/- Date: May 24th, 2016 RAJEEV KUMAR AGARWAL Place: Mumbai WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
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