BEFORE THE SECURITIES APPELLATE TRIBUNAL
MUMBAI
Appeal No. 21 of 2011
Date of decision: 11.7.2011 1) Krishiraj Trading Limited
Survey No. 76, Village Morai, Vapi,
Gujarat – 396191.
2) Welspun Mercantile Limited
Welspun City, Village Varsamedi,
Anjar, Gujarat – 370 110.
3) Welspun Fintrade Limited
(Formerly known as Welspun
Tradings Limited)
Welspun City, Village Varsamedi,
Tal. Anjar, Gujarat – 370 110.
4) Welspun Wintex Limited
Welspun City, Village Varsamedi,
Tal. Anjar, Gujarat – 370 110.
……Appellants
Versus
Securities and Exchange Board of India
SEBI Bhavan, Plot No. C-4A, G Block,
Bandra Kurla Complex, Bandra (East),
Mumbai – 400 051.
…… Respondent
Mr. Janak Dwarkadas, Senior Advocate with Mr. Sanjay Asher, Advocate for
Appellants.
Mr. Shiraz Rustomjee, Advocate with Ms. Harshada Nagare, Advocate for the
Respondent.
CORAM : Justice N. K. Sodhi, Presiding Officer
P. K. Malhotra, Member
S. S. N. Moorthy, Member
Per : Justice N. K. Sodhi, Presiding Officer (Oral)
This order will dispose of two Appeals no. 21 and 22 of 2011 both of
which are directed against an ex-parte order dated December 2, 2010 passed by
the whole time member of the Securities and Exchange Board of India restraining,
among others, the appellants from buying, selling or dealing in securities of their
own companies and other listed group companies till further orders. The
promoters of the appellant companies have also been directed to ensure that they
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do not change their shareholding pattern. The ex-parte order has been treated as a
show cause notice and the appellants were required to file their replies thereto.
One of the grievances made in the appeal before us is that the respondent Board
has not given complete inspection of the records to the appellants. The learned
counsel for the respondent Board disputes this position and states that the
inspection was allowed in terms of the request made by the appellants in their
letter dated February 15, 2011. It is not necessary for us to decide this issue at
this stage since the matter is to be gone into by the whole time member who will
look into this aspect as well. Since the impugned order is an ex-parte order and
the appellants are yet to be heard, we need not go into the issues raised in the
present appeals. It is, however, clarified that the direction issued to the entities
mentioned in para 53A of the impugned order shall not apply to the appellants.
The appeals stand disposed of as above and the issues raised therein
remain open. No costs.
Sd/-
Justice N. K. Sodhi
Presiding Officer
Sd/-
P. K. Malhotra
Member Sd/-
S. S. N. Moorthy
Member
11.7.2011
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