Sri Gopal Jalan & Company vs Calcutta Stock Exchangeassociation ... on 9 May, 1963
In the memorandum of appeal as well as on the date of hearing for admission and for interim order, the learned counsel for the appellant Shri Iyer made out a case for setting aside the impugned order relying on the judgement of the Hon'ble Supreme Court of India in Sri Gopal Jalan & Co. v. Calcutta Stock Exchange Ltd. AIR 1964 SC 250. His argument, in brief, was that since there was no allotment involved in a reissue of forfeited shares, such reissue could be validly rescinded by the board as the passing of the resolution by the Board of Directors of the company on 24.12.2002 for preferential allotment in the instant case, being a case of an inadvertent mistake of law, was non est. He therefore argued that the subsequent rescinding of the resolution by the Board was the end of the matter and there was no cause thereafter for SEBI to proceed further in the matter. The learned counsel for the respondent submitted that this was an arguable issue and any ruling on this by the Tribunal could have a bearing on several other cases and that the matter be therefore deferred for detailed hearing on a subsequent date. Thereupon the learned counsel for the appellant agreed to drop this line of argument and pressed for final orders on his alternative submission in the memorandum of appeal for reducing the penalty amount to the barest minimum in view of the bonafides of the entire transaction.