Rich Paints Ltd. Vs. Vadodara Stock Exchange Ltd. and ors. - Court Judgment

Excerpt:
company - jurisdiction - sections 69, 69 (4), 73, 73 (3) and 73 (3a) of companies act, 1956, securities (contracts) regulation act, 1956, securities and exchange board of india act, 1992 and article 226 of constitution of india - order passed by sebi (securities and exchange board of india) challenged - by impugned order appeal under section 22 dismissed - petition under article 226 - application money cannot be paid or received by company which might be physically received by company but not deposited in separate bank account with scheduled banks - in view of findings and provisions application money pursuant to minimum subscription of shares offered to public not paid to and received by company as required by sections 69 and 73 - in view of fraudulent conduct on part of those in charge of management of petitioner-company court would decline to exercise its prerogative discretionary jurisdiction under article 226 in favour of petitioner-company - petition dismissed. - order19. in the result, the petition is hereby dismissed. notice is discharged with costs. the amounts of costs are quantified at rs. 5,000 (rupees five thousand only) for respondent no. 3 and another sum of rs. 5,000 (rupees five thousand only) for respondents nos. 4 to 6 in one set. the costs shall be paid within one month from today. after the judgment is pronounced, mr. soparkar, learned counsel for the petitioner, prays for stay of this judgment. all that this court has done is to dismiss this petition against the order of the appellate authority under section 22 of the securities contracts (regulation) act, 1956. during the pendency of the petition, there was no ad interim or interim stay against operation of the said order of the appellate authority nor was there any other interim or ad-interim relief granted in favour of the petitioner. in this view of the matter, the request is rejected.

Judgment:
ORDER

19. In the result, the petition is hereby dismissed. Notice is discharged with costs. The amounts of costs are quantified at Rs. 5,000 (rupees five thousand only) for respondent No. 3 and another sum of Rs. 5,000 (rupees five thousand only) for respondents Nos. 4 to 6 in one set. The costs shall be paid within one month from today.

After the judgment is pronounced, Mr. Soparkar, learned counsel for the petitioner, prays for stay of this judgment. All that this court has done is to dismiss this petition against the order of the appellate authority under section 22 of the Securities Contracts (Regulation) Act, 1956. During the pendency of the petition, there was no ad interim or interim stay against operation of the said order of the appellate authority nor was there any other interim or ad-interim relief granted in favour of the petitioner. In this view of the matter, the request is rejected.