2013 (5) TMI 1073 - HC - SEBI

Summary

Issues:
1. Transfer of shares pending in the name of CRB Trustees Limited A/c. CRB Mutual Fund.
2. Release of deposited amount and unpaid dividends by Reliance Infrastructure Ltd.
3. Appointment of a Committee to wind up the Mutual Fund Scheme and certify securities transactions.
4. Payment to unitholders and disposal of securities of CRB Mutual Fund.
5. Transfer of records from Mumbai to the Official Liquidator, New Delhi.
6. Appointment of a Committee to wind up the scheme in accordance with SEBI Regulations.
7. Payment to former employees of the Provisional Administrator.

Analysis:

1. The judgment involves multiple applications related to the transfer of shares pending in the name of CRB Trustees Limited A/c. CRB Mutual Fund. Various applicants, including Sofear Global Limited and other entities, sought the transfer of shares they claimed to have validly purchased. The Bombay High Court had initially put in place a certification procedure for CRB Mutual Fund shares, which was subsequently amended. The applications also requested the release of deposited amounts and unpaid dividends by Reliance Infrastructure Ltd.

2. The court noted the receipt of cheques from the Bombay High Court related to dividends and interest on Reliance Infrastructure Ltd. shares claimed by Sofear Global Research (HK) Ltd. The court directed the encashment of the cheques and placement in a fixed deposit. It further ordered Reliance Infrastructure Ltd. to deposit all future dividends, interests, or payments with the court. Despite some contentions regarding the deposit of dividends, the court issued general directions to ensure compliance.

3. A three-member Committee was appointed to wind up the Mutual Fund Scheme and certify securities transactions from a specific period. This Committee was authorized to examine the claims of applicants seeking the transfer of shares and carry out necessary certifications. The judgment disposed of all related applications in line with these directions.

4. Another application by the Provisional Administrator sought to pay out certain payments to unitholders and dispose of securities of the CRB Mutual Fund. Due to subsequent orders appointing a Committee to wind up the respondent's affairs, this application was deemed infructuous and disposed of accordingly.

5. Applications related to the transfer of records from Mumbai to the Official Liquidator in New Delhi were also rendered infructuous due to the appointment of the Committee to wind up the respondent company's affairs. These applications were disposed of based on the main petition's outcome.

6. Additional applications concerning the winding up of the scheme in accordance with SEBI Regulations were disposed of in line with separate orders issued on the same day in the main petition. The court reiterated that no further orders were necessary given the appointment of the Committee.

7. Lastly, an application by former employees of the Provisional Administrator sought payment for services rendered. The court considered the circumstances and directed a lump sum payment to one of the former employees. It allowed the Chairman to determine any further reasonable payments for work or assistance provided. The application was disposed of in light of the main petition's directions regarding winding up the affairs of the fund and related matters.