Appeal No. 35/2004


Date of Hearing


Date of Decision



In the matter of:


Chandravadan J. Dalal

Appellant � Represented by


Mr. Vicky Singh, Mr. S.H. Merchant & Mr. O. Mohandas, Advocates




Securities & Exchange Board

Respondent �Represented by

of India

Mr. Kumar Desai, with Ms. Daya Gupta, Advocates




Deepak C. Dalal






����������� 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 29th November 2004. The appeal accordingly abates.The penalty imposed on the original appellant being personal in nature also abates.

   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.



Justice Kumar Rajaratnam

Presiding Officer


R.N. Bhardwaj


C. Bhattacharya



Place: Mumbai

Date: 15/06/2005