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Radhika Santhanakrishnan vs Sebi

Securities Appellate Tribunal22 July 2019Tarun Agarwala

Ratio decidendi

The rule this decision rests on

The appeal was disposed of because the respondent's affidavit of July 8, 2019 stated that, on a fresh assessment, the fair value of the appellant company's shares was nil; the Tribunal held that a fair value which is nil and not positive takes the case outside the action provided under Regulation 23(3) of the Delisting Regulations, 2009, so that the impugned compulsory delisting order need not be further examined on the valuation challenge.

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

Judgment

As delivered

BEFORE THE SECURITIES APPELLATE TRIBUNALMUMBAI

Date of Decision : 22.07.2019

Appeal No. 118 of 2019 Radhika Santhanakrishnan 15, Krishnaswamy Iyer Avenue, Luz, Chennai - 600 004. ... Appellant

Versus

1.

BSE Ltd.

Floor 25, P. J. Towers, Dalal Street, Fort, Mumbai - 400 001.

2. S & S Industries and Enterprises Ltd. 204, SIDCO AIEMA TOWER, First Main Road, Ambattur Industrial Estate, Chennai 600 058. ...Respondents

Mr. Somasekhar Sundaresan, Advocate with Mr. Rajesh Khandelwal, Advocate i/b Juris Link for the Appellant. Mr. Manish Chhangani, Advocate i/b Khaitan & Co. for the Respondent Nos. 1.

None for the Respondent Nos. 2.

CORAM : Justice Tarun Agarwala, Presiding Officer Dr. C. K. G. Nair, Member Justice M. T. Joshi, Judicial Member

Per : Justice Tarun Agarwala, Presiding Officer (Oral)

1. The Delisting Committee of BSE Ltd. (hereinafter referred to

as, 'BSE') passed the impugned order dated June 26, 2018 under

Regulations 22(2) of the Securities and Exchange Board of India 2

(Delisting of Equity Shares) Regulations, 2009 (hereinafter referred

to as, 'Delisting Regulations') directing the appellant company to be

compulsorily delisted from the exchange.

2. The present appeal has been filed questioning the fair value of

the company determined by the independent valuer appointed by the

exchange. An affidavit in reply dated July 8, 2019 has been filed by

the respondent today indicating that pursuant to a fresh assessment

the value of the shares of the company is now NIL.

3. In view of the aforesaid affidavit filed by the respondent

indicating that the fair value of the shares of the company is now NIL

and is not positive, the action provided under Regulation 23(3) of the

Delisting Regulations will not be applicable to the appellant

company.

4. In view of the aforesaid the appeal is accordingly disposed of.

Sd/-

Justice Tarun Agarwala Presiding Officer

Sd/-

Dr. C. K. G. Nair Member

Sd/-

Justice M. T. Joshi Judicial Member 22.07.2019 Prepared & Compared by PTM

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