Securities Appellate Tribunal
Gangotri Textiles Limited & Ors. vs Sebi on 29 August, 2019
Author: Tarun Agarwala
Bench: Tarun Agarwala
BEFORE THE SECURITIES APPELLATE TRIBUNAL
MUMBAI
Date of Decision: 29.08.2019
Appeal No. 457 of 2018
1.Gangotri Textiles Limited 25-A, Venkatachalam Co-op, Colony, R.S. Puram, Coimbatore- 641 002
2. Manoj Kumar Tiberewal 401, Belleza Apartment, 258 Alagesan Road, Saibaba Colony Post, Coimbatore- 641 011, Tamilnadu
3. Anita Tibrewal 401, Belleza Apartment, 258 Alagesan Road, Saibaba Colony Post, Coimbatore- 641 011, Tamilnadu
4. Mayank Tibrewal 401, Belleza Apartment, 258 Alagesan Road, Saibaba Colony Post, Coimbatore- 641 011, Tamilnadu
5. Umang Tibrewal 401, Belleza Apartment, 258 Alagesan Road, Saibaba Colony Post, Coimbatore- 641 011, Tamilnadu ...Appellants Versus National Stock Exchange of India Limited Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra Mumbai - 400 051 ...Respondent 2 Ms. Rishika Harish, Advocate with Ms. Nirali Mehta, Advocate i/b Mindspright Legal for Appellants. Mr. Rashid Boatwalla, Advocate with Ms. Shreya Anuwal, Advocate i/b Manilal Kher Ambalal & Co. for the Respondent. CORAM: Justice Tarun Agarwala, Presiding Officer Justice M. T. Joshi, Judicial Member Per: Justice Tarun Agarwala (Oral)
1. Against the order dated July 05, 2017 and March 26, 2018 the present appeal has been filed. By order of July 05, 2017 the trading in the equity shares of the company was suspended till such time the company complied with Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("LODR Regulations, 2015"
for convenience) and paid the fine. By order dated March 26, 2018 the appellant was imposed a fine of ` 44,53,073/- for violation of Clause 41 of the Listing Agreement and ` 16,48,073/- for violation of Regulation 33 of the LODR Regulations, 2015.
2. We have heard Ms. Rishika Harish the learned counsel for the appellants and Shri Rashid Boatwalla the learned counsel for the respondent. The contention of the learned counsel for the appellants was that the amount is excessive and not in 3 accordance with the circulars in as much as the appellants admittedly did not supply the information within the stipulated period but eventually after a delay had supplied the information to the Stock Exchange. It was submitted that the information under Clause 41 of the Listing Agreement and under Regulation 33 of the LODR Regulations, 2015 was supplied on September 08, 2017 but the fine has been calculated upto March 26, 2018 which is wholly incorrect and arbitrary.
3. In this regard, the learned counsel for the respondent Shri Rashid Boatwalla was directed to seek instructions. Upon instructions the learned counsel stated that necessary compliance was eventually made on September 08, 2017 and, therefore, the fine under Clause 41 of the Listing Agreement was recalculated and now ` 34,73,073/- is payable and under Regulation 33 of the LODR Regulations, 2015 the fine payable is ` 6,68,073/-
4. In the light of the aforesaid, since admittedly the Listing Agreement and the LODR Regulations, 2015 was not complied by the appellants the fine is required to be paid.
5. For the reasons stated aforesaid, the impugned order dated March 26, 2018 is modified. The penalty of ` 44,53,073/- under 4 Clause 41 of the Listing Agreement is reduced to ` 34,73,073/- and penalty of ` 16,48,073/- for violation of Regulation 33 of the LODR Regulations, 2015 is reduced to ` 6,68,073/-. The aforesaid amounts shall be paid by the appellants within four weeks from today. The appeal is partly allowed. Once the amount is paid the order dated July 05, 2017 would stand withdrawn. However, it would be open for the respondent to pass a fresh order in accordance with law if there is any other violation of the LODR Regulations or the Listing Agreement.
Sd/-
Justice Tarun Agarwala Presiding Officer Sd/-
Justice M. T. Joshi Judicial Member 29.08.2019 Prepared & Compared By: PK