Tatia Global Vennture Ltd. & Ors. vs Sebi
- CitationAppeal No. 570 of 2021
Ratio decidendi
The rule this decision rests on
The Tribunal reasons that where the only violation found is of a condition imposed under the listing agreement, and that condition is a breach of the LODR Regulations, the penalty for that violation is not one the Board may impose on the basis of the findings made; the appellants' contention that only the stock exchange can impose a penalty for violations of the LODR Regulations is treated as a prima facie arguable point sufficient to justify interim relief. Interim stay of the impugned order is granted conditional upon deposit of 25% of the penalty, to be held in an interest-bearing account pending the appeal.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
BEFORE THE SECURITIES APPELLATE TRIBUNAL MUMBAI Date: 03.09.2021
Appeal No. 570 of 2021
Tatia Global Vennture Ltd. & Ors. ..... Appellants
Versus
Securities & Exchange Board of India ... Respondent
Mr. Prakash Shah, Advocate with Mr. Kushal Shah, CA i/b Prakash Shah & Associates for the Appellants and Mr. Bharat Jain Tatia, Appellant No. 3 in person.
Mr. Nikhil Sakhardande, Advocate with Mr. Abhiraj Arora, Ms. Rashi Dalmia, Mr. Karthik Narayan, Advocates i/b ELP for the Respondent.
ORDER :
1. Respondent is allowed three weeks' time to file reply.
Rejoinder, if any, may be filed by the appellants within three weeks
thereafter. List for admission on November 18, 2021. 2
2. Considering the facts and circumstances and the findings given
by the WTM in the impugned order, we find that the only violation is
the condition imposed under the listing agreement and, therefore,
violative of Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015
(hereinafter referred to as 'LODR Regulations'). The contention of
the appellants is that only the stock exchange can impose a penalty
for violation under the LODR Regulations. Considering the
aforesaid, we stay the effect and operation of the impugned order
provided the appellants deposit 25% of the penalty amount within
four weeks from today. The amount so deposited shall be kept in an
interest bearing account and would be subject to the result of the
appeal.
3. Parties will take instructions from the Registrar 48 hrs. before
the date fixed in order to find out as to whether the appeal would be
heard through video conference or through physical hearing.
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 3
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 RAJALA Digitally signed 03.09.2021 by
KSHMI RAJALAKSHMI H NAIR
PTM Date: 2021.09.06 H NAIR 16:43:08 +05'30'
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