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
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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
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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
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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