9911796707
TMI Blog2015 (8) TMI 1401X X X X Extracts X X X X X X X X Extracts X X X X ..... interim order pending investigation is subject not only to the representation to the Stock Exchange but is also subject to appeal to the Securities Appellate Tribunal. Therefore, the submissions urged before us could be urged either in the representation before the Official of the Stock Exchange or before the Securities Appellate Tribunal in an appeal, if they choose to prefer an appeal. The relief which they are seeking from this Court is something which would be available to them by availing of statutory alternative remedy provided to them under the Securities Contracts (Regulation) Act, 1956 or by filing a representation tot he Stock Exchange. Thus, we see no reason to exercise our extraordinary writ jurisdiction in the peculiar facts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as recorded in the impugned order in view of the prima facie view that there was market manipulation in respect of the shares of petitioner no.1-company. 2. Mr. Aspi Chinoy, learned Senior Advocate appearing for the petitioners challenges the impugned order, inter alia on the following grounds:- (a) Bye law 21 of the Stock Exchange Bye Laws under which the impugned order is passed is violative of Article 14 of the Constitution as it does not provides for any hearing before passing of the order; (b) impugned order records it is issued in accordance with the directions by SEBI, when there are no directions. In fact what has been referred to as directions is draft minutes of the meeting held between the officers of the SEBI and the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld avail of the same; (c) the impugned order has been passed on the material which prima facie would require further investigation into the dealings of the petitioners' Company's shares as it appears to be not in the interest of the fair operation of the market; (d) so far as the issue of the order being issued under Bye-law 21 of the Bombay Stock Exchange Bye-laws by the Governing Board or the Executive Director on behalf of the Governing Board, it is submitted that the necessary resolutions have been passed by the Governing Board allowing its Managing Director and Chief Executive Officer to issue orders for and on behalf of the Governing Board. Further the M.D. C.E.O. is regarded as the Executive Director of the Stock Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e carried out by the Exchange/SEBI. ** ** ** In view of the above, as directed by SEBI and as an interim measure, it is necessary to take immediate action. Accordingly, in exercise of the powers vested in me under Bye-law 21 of the Exchange, the trading in the securities of the company is suspended / prohibited w.e.f. August 28, 2015 till further directions; to safeguard the interests of securities market and investors. In case, you wish to avail an opportunity of making representation with regards to suspension in the trading of securities of your company, you may approach the concerned officials at the below mention ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... they are seeking from this Court is something which would be available to them by availing of statutory alternative remedy provided to them under the Securities Contracts (Regulation) Act, 1956 or by filing a representation tot he Stock Exchange. Thus, we see no reason to exercise our extraordinary writ jurisdiction in the peculiar facts of this case. 5. So far as the issue of Regulation 21 of the bye-laws of the Bombay Stock Exchange being ultra vires of Article 14 and 19(1)(g) of the Constitution is concerned, the challenge is on the basis that the impugned interim order has been passed without following principles of natural justice etc. Firstly, it must be appreciated that principles of natural justice are not immutable. They necess ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
