BEFORE THE SECURITIES APPELLATE TRIBUNAL
MUMBAI

Appeal No. 190 of 2012

Date of Decision: 4.10.2012

Ramesh Javda
101 Claridge Apartment, 3rd Crosslane,
Samarth Nagar, Lokhandwala,
Andheri (W), Mumbai – 400063.

    … Appell   

Versus

Securities and Exchange Board of India
SEBI Bhavan, Plot No.C- 4A, ‘G’
Bandra Kurla Complex, Bandra (East),
Mumbai – 400 051.

… Respondent

Mr. Ankit Lohia, Advocate with Mr. Manish Chhangani, Advocate for Appellant.

Ms. Harshada Nagare, Advocate for the Respondent.

Coram : P. K. Malhotra, Member & Presiding Officer ( Offg.)
S.S.N. Moorthy, Member

Per : P. K. Malhotra (Oral)

This order will dispose of eleven appeals nos. 190, 191, 192, 193, 194, 195, 196,

197, 198, 199 and 200 of 2012 which arise out of a common investigation carried out by the

Securities and Exchange Board of India (for short the Board) in the matter of Pyramid

Saimira Theater Ltd. (the company).

2. The facts of the case, in brief, are that the Board carried out investigation in the

dealing in the scrip of the company and came to a prima facie conclusion that a large

number of entities had joined hands and some of them have carried out suspicious banking

transactions and have channeled funds either directly or indirectly in the stock market.

Pending investigation, the whole time member of the Board passed an ex-parte ad-interim

order of April 23, 2009 restraining 230 entities and their directors/proprietors/partners from

buying, selling or dealing in securities market including Initial Public Offerings, in any

2

manner, either directly or indirectly, till further directions. The said ex-parte ad-interim

order was also a show cause notice to these entities and they were asked to file their

objections, if any. After giving an opportunity of hearing, the whole time member of the

Board passed interim order on December 9, 2009 confirming the ex-parte ad-interim order

against twenty entities and no order was passed against rest of them.

3. Some of these companies came up in appeal before this Tribunal alleging that

in spite of completion of investigation and personal hearing, the Board has failed to pass

final order in the matter and the appellants are being denied their right to trade in the market

for more than three years now. Keeping in view the long delay, the alleged role played by

the appellants, as disclosed in the impugned order and also taking note of the fact that the

appellants have remained out of the securities market for a considerably long period, this

Tribunal stayed the ex-parte ad-interim order, qua the appellant companies, without

prejudice to the rights of the Board to proceed further in the matter and without expressing

any opinion on the merits of the case.

4. The present appeals are filed by the directors/ex-directors/proprietors/partners of the

said companies stating that on the basis of the order passed by this Tribunal in respect of the

companies, the demat accounts of these companies were defrozen but ban on the demat

accounts of respective director/partners, who are the appellants before us, was not lifted. It

is the case of the appellants that there is no finding in the impugned order about the

suspicious banking transactions of the appellants in their personal capacity and continuous

operation of the ex-parte ad-interim order is putting these appellants to huge loss and lack of

opportunity to trade in the market. The details of these appeals are as under:-

DETAILED TABLE SHOWING THE DIRECTORS AND THEIR CORRESPONDING
COMPANIES

Sr
No
Appeal
No.
Name of the
Appellant
Date of
Impugned
Order

Name of the
Company
Appeal No.
of the
Company

Whether against
Ex-Parte Ad
Interim Order
dated April 23,
2009 or
Confirmatory
Order dated
December 09,
2009

Date of
disposal of the
Company’
appeal

1. 190/2012 Ramesh
   Javda
   December
   09, 2009
   a) Javda India
   Impex Limited
   a)11 of 2012 a) Confirmatory
   Order dated
   December 09,
   2009

a) March 02,
2012

3

2. 191/2012 Rose
   Padbidri

December
09, 2009
a) Lexus Infotech
Limited
b) New Planet
Trading Co.
Pvt. Ltd.

a) 9 of 2012
b) 41 of 2012
a) Confirmatory
Order dated
December 09,
2009
b) Ex-Parte Ad
Interim Order
dated April 23,
2009

a) February
03, 2012
b) April 04,
2012

3. 192/2012 Uttamchand
   Hinger

December
09, 2009
a) Raghunandan
Rayons Ltd.
a) 214 of
2011
a) Confirmatory
Order dated
December 09,
2009

a) January
23, 2012

4. 193/2012 Nilesh
   Parmar

December
09, 2009
a) Olive Overseas
Pvt. Ltd.
(Previously
known as
Realgold Trading
Company Pvt.
Ltd.)

a) 125 of
2012
a) Confirmatory
Order dated
December 09,
2009

a) June 21,
2012

5. 194/2012 Manish Jain

December
09, 2009
a) SBJ Trading
(I) Pvt. Ltd.
b) JPK Trading
(India) Pvt. Ltd.
c) Ostwal Trading
(India) Pvt. Ltd.

a) 38 of 2012
b) 36 of 2012
b) 39 of 2012

a) Confirmatory
Order dated
December 09,
2009
b) Ex-Parte Ad
Interim Order
dated April 23,
2009
c) Ex-Parte Ad
Interim Order
dated April 23,
2009

a) February
24, 2012
b) April 04,
2012
c) April 04,
2012

6. 195/2012 Pankaj Jain

December
09, 2009
a) Capetown
Mercantile Co.
Pvt. Ltd.
b) Faststone
Trading Co. Pvt.
Ltd.
c) Riddhi Siddhi
Multitrade Pvt.
Ltd.

a) 106 of
2011
b) 43 of 2012
c) 37 of 2012

a) Confirmatory
Order dated
December 09,
2009
b) Confirmatory
Order dated
December 09,
2009
c) Confirmatory
Order dated
December 09,
2009

a) July 21,
2011
b) February
24, 2012
c) February
24, 2012

7. 196/2012 Jitendra
   Tater

December
09, 2009
a) Sanjivani
Enviro
Protection
Limited

a) 10 of 2012

a) Confirmatory
Order dated
December 09,
2009

a) February
03, 2012

8. 197/2012 Gopal
   Verma

December
09, 2009
a) Alka
Diamond
Industries Ltd.

a) 163 of
2012

a) Confirmatory
Order dated
December 09,
2009

a) October 14,
2011

9. 198/2012 Virendra
   Abhani

December
09, 2009
a) Sanjivani
Enviro
Protection
Limited
b) New Planet
Trading Co. Pvt.
Ltd.

a) 10 of 2012
b) 41 of 2012
a) Confirmatory
Order dated
December 09,
2009
b) Ex-Parte Ad
Interim Order
dated April 23,
2009

a) February
02, 2012
b) April 04,
2012

4

10. 199/2012 Praveen
    Kumar Jain

December
09, 2009
a) SBJ Trading
(I) Pvt. Ltd.
b) Anchal
Properties Pvt.
Ltd.

a) 38 of 2012
b) 223 of
2011

a) Confirmatory
Order dated
December 09,
2009
b) Confirmatory
Order dated
December 09,
2009

a) February
24, 2012
b) January 31,
2012

11. 200/2012 Ajay Dixit

December
09, 2009
a) Kush
Hindustan
Entertainment
Limited

a) 224 of
2011

a) Confirmatory
Order dated
December 09,
2009

a) January 30,
2012

5. We have heard the learned counsel for the parties. The findings/observations in the

impugned order were against the companies and consequently the restraint order was passed

against the directors also. When the restraint order against the companies has been vacated,

in the absence of any other reason on record, we see no reason as to why the restraint order

should continue against the appellants before us.

6. For the reasons stated in our orders passed in the appeals filed by the companies, the

impugned interim order, qua the appellants before us, is also stayed. It is made clear that we

are passing this order without prejudice to the right of the Board to proceed further in the

matter and it shall not be taken as an expression of our opinion on the merits of the case.

The rights and contentions of both sides shall remain open.

All the appeals stand disposed of accordingly. No costs.

                     Sd/-    
                      P.K. Malhotra  
                   Member &  
  Presiding Officer ( Off g.)  





                      Sd/-  

S.S.N. Moorthy
Member

4.10.2012
Prepared and compared by
RHN