Pheroze Rustom Mody vs Sebi

Date of Decision : 15.07.2021

Misc. Application No. 730 of 2021 And Appeal No. 474 of 2021

Pheroze Rustom Mody 10w, Navroze Apartment, 35, Bhulabhai Desai Road, Mumbai - 400 026. ...Appellant Versus

National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, G - Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051. ...Respondent

Mr. Kunal Katariya, Advocate for the Appellant.

Mr. Zal Andhyarujina, Advocate with Mr. Rashid Boatwalla and Mr. Aditya Vyas, Advocates i/b Manilal Kher Ambalal & Co. for the Respondent.

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

Per : Justice Tarun Agarwala, Presiding Officer (Oral)

1.

There is a delay in the filing of the appeal. In view of

the order of Supreme Court dated March 23, 2020 and April

27, 2021 in Suo Moto Writ Petition (Civil) No. 3 of 2020, the 2

delay in the filing of the appeal is condoned. The application

is allowed.

2. We have heard the learned counsel for the parties.

It seems that the appellant had opened a trading account with

Kaynet Finance Limited. This broker apparently pledged the

shares of the appellant without its consent. This broker was

first suspended and then expelled by the stock exchange.

It seems that the appellant entered into a private agreement

with the broker wherein the broker agreed to pay a sum of

Rs. 85 lakh in settlement of the claim between the parties.

Since the same was dishonored the appellant filed a claim

application which application was rejected by the impugned

communication dated February 20, 2021.

3. Having heard the learned counsel for the parties and

having perused the impugned order we find that the basis of

rejection of the claim application is very cryptic and no

reasons have been given. We accordingly set aside the

impugned order dated February 20, 2021 and direct the

respondent to pass a fresh order giving reasons. The appeal is

allowed.

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

Justice M.T. Joshi Judicial Member 15.07.2021 RAJALA Digitally by signed

KSHMI NAIR RAJALAKSHMI H

msb Date: 2021.07.19 H NAIR 10:15:12 +05'30'