Madras High Court
Kasinadhuni Nageshwara Rao vs Securities Exchange Board Of India on 10 February, 2020
Author: C.V.Karthikeyan
Bench: C.V.Karthikeyan
W.P.No.7504 of 2019
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED:10.02.2020
CORAM
THE HONOURABLE MR.JUSTICE C.V.KATHIKEYAN
W.P.No.7504 of 2019
and
W.M.P.No.8169 of 2019
Kasinadhuni Nageshwara Rao
Sivalenka Sambhuprasad Dharma Nidhi Trust
Rep. by the Managing Trustee,
S.Sambhu Prasad,
14/15, Luz Church Road,
Madras - 4. ... Petitioner
vs.
1.Securities Exchange Board of India,
SEBI Bhavan,
Plot No.C4-A, 'G' Block,
Bandra-Kurla Complex, Bandra (East),
Mumbai - 400051.
2.National Securities Depository Limited,
Rep by Senior Manager,
Trade World, A Wing, 4th Floor,
Kamala Mills Compound,
Lower parel,
Mumbai - 400013.
3.Ministry of Finance,
Rep by Secretary,
Department of Revenue,
Room No.46, North Block,
New Delhi - 110001.
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W.P.No.7504 of 2019
4.Amrutanjan Health Care Limited,
Rep by its authorized signatory
No.103, Luz Church Road,
Mylapore, Chennai - 600004.
5.Indbank Merchant Banking Services Limited
Rep by its authorized signatory
First Floor, Khivraj Complex -1,
No.480, Anna Salai,
Nandanam, Chennai - 600035. ... Respondents
Writ Petition filed under Article 226 of the Constitution of India
to issue a Writ of Certiorarified Mandamus calling for the records of the
1st respondent relating to the letter vide NSDL/GS/HK/AS/2017/159
dated 09.08.2017 read with letter vide NSDL/GS/HK/2017/233 dated
26.12.2017 and letter NSDL/GS/HK/2018/137 dated 24.07.2018 in so
far as the petitioner herein is concerned, quash the same as illegal,
arbitrary and devoid of merit and consequentially direct the 1st
respondent herein to transfer the entire shareholding in favour of the
petitioner Trust without insisting for Succession Certificate or Letter of
Administration or a Court Decree or Probate of the Will.
For petitioner : Mr.P.H. Aravind Pandian,
Senior Counsel
for M/s.Hari Shankar Mani
For respondents : M/s.Shiva Kumar & Suresh - R1
Mr.Vinod Kumar - R2
Mr.J.Madhanagopalrao,
Central Govt. Standing Counsel - R3
Mr.Subhang P.Nair - R4
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W.P.No.7504 of 2019
ORDER
The writ petition has filed by the Managing Trustee of the Kasi nadhuni Nageshwara Rao, Sivalenka Sambhuprasad Dharma Nidhi Trust, situated at 14/15, Luz Church Road, Chennai.
2. The petitioner is the Testator appointed under the Will executed by the Testator dated 10.12.2017.
3. By the Will, the petitioner Trust was the sole beneficiary of 29,90,730 equity shares of the 4th respondent company, Amrutanjan Health Care Limited, No.103, Luz Church Road, Mylapore, Chennai.
The shares were bequeathed by late Mrs.D.Leela Bhramara W/o.Late Mr.Seetharama Roa by the virtue of her last Will and Testament dated 10.12.2017.
4. Mr. M.Chandra Sekhar, Manager and authorized signatory of the first respondent viz., Securities and Exchange Board of India, has filed a counter affidavit on behalf of the first respondent.
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5. The issue in the present Writ petition is the transmission of the ownership of the said equity shares in favour of the petitioner Trust. This was objected by the respondents. However, in the counter has been by the second respondent, in which in paragraph nos.7 & 15, it has been stated as follows:
''7. I state that as regards the transmission of securities, the bye-laws of the second respondent and its participants state as follows:
.....9,10.Transmission of Securities 9.10.3.In case where the deceased was a sole holder of the client account, his legal heir(s) or the legal representative(s) shall be the only person(s) recognised by NSDL as having any title to the security balances in that sold client account.
9.10.4. Such surviving joint holder(s) or legal heir(s) or legal representative(s) shall be required to produce such evidence and follow the procedures prescribed in the Business Rules for the purpose of transmission of security balances in their favour.'' ''15. I state that considering the aforesaid responses of the second respondent, the petitioner has filed the present writ petition. I further state that subsequent to the transmission request, in order to harmonize the transmission of demat securities with transmission of physical securities, SEBI 4 http://www.judis.nic.in W.P.No.7504 of 2019 amended Listing Obligation and Disclosure Requirements Regulations, 2015 (Amended LODR) with effect from 16.11.2018. Part C to schedule VII of Amended LODR provides that in respect of transmission of securities for value above Rs.2,00,000 as on the date of application, a succession certificate or probate of will or will or letters of administration or court decree, as may be applicable in terms of Indian Succession Act, 1925, shall be submitted.
Further, SEBI had vide its circular dated 04.01.2019 reaffirmed the said amendment (2019 Circular)''
6. In view of the fact that none of the respondents have objected of transmission, no further orders required in the Writ Petition.
7. The Writ Petition is allowed and the records of the first respondent with respect to the impugned oder insofar as the petitioner concerned is quashed. The first respondent is directed to transfer the shares in favour of the petitioner Trust without insisting for Succession Certificate or Letters of Administration or a Court Decree or Probate of the Will mentioned above. Consequently, connected miscellaneous petition is closed. No costs.
5http://www.judis.nic.in W.P.No.7504 of 2019 10.02.2020 Index:Yes/No Internet:Yes/No Speaking/Non-speaking orders rli To
1.Securities Exchange Board of India, SEBI Bhavan, Plot No.C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051.
2.The Senior Manager National Securities Depository Limited, Trade World, A Wing, 4th Floor, Kamala Mills Compound, Lower parel, Mumbai - 400013.
3.The Secretary, Ministry of Finance, Department of Revenue, Room No.46, North Block, New Delhi - 110001.
4.The Authorized Signatory, Amrutanjan Health Care Limited, No.103, Luz Church Road, Mylapore, Chennai - 600004.
5.The Authorized Signatory, Indbank Merchant Banking Services Limited, First Floor, Khivraj Complex -1, No.480, Anna Salai, Nandanam, Chennai - 600035.
6http://www.judis.nic.in W.P.No.7504 of 2019 C.V.KARTHIKEYAN,J.
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