IN
THE SECURITIES APPELLATE TRIBUNAL
MUMBAI
Appeal No. 35/2004
In the matter of:
Coram: ����������� Justice
Kumar Rajaratnam, Presiding Officer ����������� C.
Bhattacharya, Member ����������� R.
N. Bhardwaj, Member Per:� Justice
Kumar Rajaratnam, Presiding Officer 1.
Appeal is taken up
with consent of parties. 2.
This appeal need not
detain us for too long. 3.
One Chandravadan J.
Dalal (hereinafter referred to as the Original appellant) who is the original
appellant in this appeal challenged the impugned order dated 23.2.2004.� By the said impugned order, the original
appellant was barred from the securities market for a period of 2 years for
allegedly violating SEBI (Fraudulent & Unfair Trade Practises relating to
securities market) Regulation 1995.� 4.
The appeal abates
since the appellant during the pendency of the appeal died on 5.
However, his son Mr.
Deepak C. Dalal sought to implead himself.�
The contention of the son, Mr. Deepak Dalal was that during the lifetime
of his father, the original appellant, he had filed a nomination with the BSE appointing
his son as the nominee for the membership of the stock exchange. The BSE was
also informed about the demise of the original appellant. 6.
The BSE directed the
nominee of the original appellant to seek permission from the exchange to
continue the business of the deceased, the original appellant.� 7.
It is common ground
of the legal representatives of the appellant that the deceased original
appellant had informed BSE that Deepak C. Dalal be permitted to continue the
business of his late father. �No
objection certificate was also given by other legal representatives. 8.
�On 8.9.2004, BSE granted permission to Deepak
Dalal to operate the account of the deceased.�
9.
Deepak is the only
son and there was no dispute with regard to the transfer of the title in favour
of Deepak Dalal to continue the business of the father.� His two sisters by letter dated 1.12.2004 have
given their permission to the stock exchange to allow Deepak Dalal to continue
the business. 10.
So far as the BSE is
concerned, they have approved the transfer and the same has been transmitted to
SEBI for prior approval.� The matter is
pending with SEBI.� SEBI has not given
registration to Deepak Dalal so far.� 11.
This Court by an
order dated 27.5.2005 granted an order of status quo to permit Deepak
Dalal to continue the business in view of the fact that the stock exchange has
given approval and the matter was pending with SEBI. 12.
Both sides agree
that the matter must be left to SEBI to dispose of the application for transfer
in accordance with law without reference to penalty imposed on the original
appellant. 13.
We therefore direct
SEBI to dispose of the application for registration as expeditiously as
possible.� In the meanwhile, we feel it
appropriate that the interim order granted by this Court dated 27.5.2005 shall
enure to the benefit of Deepak C. Dalal pending consideration of the matter for
registration by SEBI. 14.
SEBI is directed to
consider the case of Deepak Dalal for registration taking into account the
approval granted by BSE without reference to the impugned order passed against Chandravadan
J. Dalal. 15.
The appeal is
disposed of accordingly.� No order as to
costs.
Place: Mumbai Date: //SR60516 |
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