Vibgyor Allied Infrastructure Ltd. vs Sebi

Date of Decision : 20.01.2016

Appeal No. 108 of 2014

Vibgyor Allied Infrastructure Ltd. Nayan Kanan, 92, K N C Road, Kolkata - 700124, West Bengal. ...Appellant Versus

Securities and Exchange Board of India, SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. ...Respondent

WITH Appeal No. 109 of 2014

Rabindra Nath Dey 13/1/1, Kalidas Singha Lane, Kolkata - 700009, West Bengal. ...Appellant Versus

Securities and Exchange Board of India, SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. ...Respondent

WITH Appeal No. 110 of 2014

Raja Bhadra 375, Prince Anwar Shah Road, Flat No. 34C & 35C, Tower 2, South City, Kolkata - 700068, West Bengal. ...Appellant Versus

Securities and Exchange Board of India, SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. ...Respondent 2

WITH Appeal No. 111 of 2014

Rana Bhadra Priyanath School Road, 22, Rabindra Nagar (South), P.O. Nimta, Kolkata - 700049, West Bengal. ...Appellant Versus

Securities and Exchange Board of India, SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. ...Respondent

Ms. Sara Sancheti, Advocate for the Appellant in Appeal Nos. 108 to 111 of 2014.

Mr. Kevic Setalvad, Senior Advocate with Ms. Shruti Chiniwar, Advocate i/b K Ashar & Co. for the Respondent in Appeal Nos. 108 to 111 of 2014.

CORAM : Justice J.P. Devadhar, Presiding Officer Jog Singh, Member

Per : J.P. Devadhar (Oral)

1.

Appellants in all these appeals have challenged the common order

passed by the Whole Time Member of Securities and Exchange Board of

India ('SEBI' for short) on February 20, 2014 whereby Vibgyor Allied

Infrastructure Ltd. appellant in Appeal No. 108 of 2014 and other

appellants who are directors of Vibgyor Allied Infrastructure Ltd. are

directed to refund the money collected pursuant to the Red Herring

Prospectuses dated June 09, 2009 and May 27, 2009, to the subscribers of

Optionally Fully Convertible Debentures with interest at the rate of 15% per

annum from the date of receipt of money till the date of refund. 3

2. Counsel for the appellants fairly states that the appellants in

implementation of the impugned order have already refunded the monies

with interest to most of the subscribers and as on the date of the filing of the

appeal, out of the amount of Rs. 61.76 crore collected only amount of

Rs. 1.61 crore had remained to be paid. It is further submitted by the counsel

for the appellants that even after the filing of the appeal, the company has

refunded some more amount to the subscribers. In these circumstances it is

submitted by the counsel for the appellants that reasonable time be given to

the appellants to refund the balance amount payable to the subscribers as

stipulated in the impugned order.

3. In view of the fact that the appellants claim to have implemented the

impugned order, the question of considering the validity of the said order, in

the present appeal, does not arise at all.

4. Only question to be considered is, whether the appellants have

actually paid the amount to the subscribers as contemplated under the

impugned order and if so, whether, the appellants are justified in seeking

extension of time for making the balance payment.

5. Although several affidavits are filed by the appellants in support of

their contention, counsel for SEBI submits that all documents necessary for

the purpose of verifying the claim of the appellants have not been furnished.

6. In these circumstances, appellants are directed to furnish to SEBI

within two weeks from today all requisite documents / particulars so as to

enable SEBI to verify the claim made by the appellants.

7. Within two weeks from the date of receiving such documents /

particulars, SEBI shall verify the same and pass appropriate order thereon

granting extension of time to pay the balance amount to the subscribers for 4

such period as it deems fit. If SEBI finds that the statements made by the

appellants that they have paid substantial amount to the subscribers is

incorrect, then SEBI is at liberty to pass such order as it deems fit and

proper so as to seek implementation of the order impugned in the present

appeal as expeditiously as possible.

8. All the appeals are disposed of in the above terms with no order as to

costs.

Sd/-

Justice J.P. Devadhar Presiding Officer

Sd/-

Jog Singh Member

20.01.2016 Prepared and compared by:

msb