Jan 16, 2006
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Orders :
Orders of SAT
IN THE SECURITIES APPELLATE TRIBUNAL
MUMBAI
Appeal No. 11/2005
Date of Hearing: 16.01.2006
Date of Decision: 16.01.2006
In the matter of:
M/s. J.F.Laboratories Ltd., Appellant –
Represented by none
Versus
Securities & Exchange Board of India - Respondent –
Represented by Mr. Ravi Hegde, and
Mr. Paras Parekh, Advocates
Coram:
Justice N. K. Sodhi, Presiding Officer
C. Bhattacharya, Member
R. N. Bhardwaj, Member
Per: Justice N. K. Sodhi, Presiding Officer (Oral)
This appeal under section 15T of the Securities and Exchange Board of India Act, 1992 (for short “the Act”) is directed against the order dated October 20, 2004 passed by the Adjudicating Officer imposing a penalty of Rs. 15 lakhs on the appellant under section 15C of the Act for not redressing the grievances of its debenture holders who are its investors. By the impugned order the Adjudicating Officer has found that the debenture holders have neither been paid interest on their debentures since the year 1995 nor have they been paid the amount which became due to them on redemption of their debentures. It may be mentioned that the debentures became due for payment in the year 2000.
2. This appeal came up for hearing on November 24, 2005. There was no representation on behalf of the appellant and the case was adjourned for today. Today also no one has appeared on behalf of the appellant.
3. We have heard the learned counsel for the respondent and having perused the impugned order we are satisfied that the order does not call for any interference by us in appeal. On the basis of the material that was available with the Board it has found that the appellant had failed to pay interest to its debenture holders and that the amount which had become due to them at the time of maturity has also not been paid. Non payment of interest and redemption proceeds in a large number of cases even when the debentures have become due for redemption is a matter of great concern and we agree with the Board that the action of the company is prejudicial to the interest of its investors who invested their hard earned money in the debentures of the company. It is, thus, clear that the appellant has failed to redress the grievances of its investors and, therefore, the penalty imposed by the Adjudicating Officer is justified. The Adjudicating Officer has already taken a lenient view by imposing a penalty of Rs. 15 lakhs only. No fault can, therefore, be found with the impugned order.
In the result, the appeal fails and the same stands dismissed.
There is no order as to costs.
Justice N. K. Sodhi
Presiding Officer
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R. N. Bhardwaj
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C. Bhattacharya
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Member
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Member
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Place: Mumbai
Date: January 16, 2006