Order in the matter of M/s. Kanel Oil and Export Industries Ltd. and its directors
- Order No.WTM/KMA/OIAE/393/06/2011
Ratio decidendi
The rule this decision rests on
Where directions restraining a company and its directors from dealing in securities were made expressly until pending investor grievances were resolved and reported to and confirmed by SEBI, the restraint lapses in substance once SEBI is satisfied, on examining the company's submissions, that all pending grievances have been redressed. The directions may then be revoked under Section 19 read with Sections 11(4)(b) and 11B of the SEBI Act, 1992, as it is in the interest of justice to do so.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
1. The Securities and Exchange Board of India (hereinafter referred to as SEBI), vide Order dated December 15, 2010 (hereinafter referred to as the Order), restrained Kanel Oil & Export Industries Limited (hereinafter referred to as the Company) and its directors, Mr. Thakkar K. Dhiren, Mr. Khese S. Umesh and Mr. Thakkar K. Hitesh Bhai from accessing the securities market and prohibited them from buying, selling or otherwise dealing in securities, directly or indirectly, till all the pending investor grievances against the said company are resolved and the same is reported to and confirmed by SEBI. The said direction was issued as it was found that the Company had failed to redress pending investor grievances. Subsequently, the Company, vide letter dated June 9, 2011 inter alia stated that it had resolved all the pending investor grievances and the same was reported to SEBI. Thereafter, according to the Company, SEBI vide an electronic mail dated May 24, 2011 had confirmed that no investor complaints were pending against it. The Company further requested to revoke the directions issued vide the aforesaid Order against itself and the directors. SEBI had examined the submissions of the Company and was satisfied that it had redressed all the pending complaints. In view of the above, it would be in the interest of justice to revoke the directions issued against the Company and its directors, vide the Order. Accordingly, I dispose of the present proceedings, as ordered hereinbelow.
2. In view of the foregoing, I, in exercise of the powers conferred upon me under Section 19 of the Securities and Exchange Board of India Act, 1992 read with Sections 11(4)(b) and 11B thereof, hereby revoke the directions issued against Kanel Oil & Export Industries Limited (having its registered office at 203 Abhijeet-1, Mithakhali Six Roads, Ellisbridge, Ahmedabad-380006) and its directors, Mr. Thakkar K. Dhiren (Permanent Account No. ABJPT6724C), Mr. Khese S. Umesh (Permanent Account No. AARPK1059J) and Mr. Thakkar K. Hitesh Bhai (Permanent Account No. ABJPT6722E), vide Order dated December 15, 2010.
3. Copies of this Order shall be served on the depositories to enable them to take necessary steps for ensuring due compliance with this Order.
DR. K. M. ABRAHAM WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA PLACE: MUMBAI DATE: JUNE 27, 2011
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