Appeal No.207 of 2012. Case: 1. Mrs. Ramkishori Gupta, 2. Harischandra Gupta Vs 1. Securities and Exchange Board of India, 2. M/s. Bombay Stock Exchange, 3. M/s. Vital Communication Ltd.. Securities and Exchange Board of India
| Case Number | Appeal No.207 of 2012 |
| Counsel | For Appellant: Mr. H. C. Gupta and For Respondents: Mr. Shiraz Rustomjee, Senior Advocate with Dr. (Mrs.) Poornima Advani, and Ms. Amrita Joshi, Advocates Mr. Omprakash Jha, Advocate |
| Judges | P. K. Malhotra, Member & Presiding Officer & Jog Singh, Member |
| Issue | Consumer Protection Act, 1986; SEBI Act - Sections 11B, 11(1), 11(2) |
| Judgement Date | April 30, 2013 |
| Court | Securities and Exchange Board of India |
Judgment:
Jog Singh, Member
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The two Appellants have preferred the present appeal mainly seeking a direction to the respondents to pay them compensation to the tune of Rs.51,53,190/- for the loss suffered by them in the process of purchasing 1,71,773 shares from M/s. Vital Communication Limited, hereinafter referred to as "VCL", which is a listed company on the Bombay Stock Exchange Ltd., hereinafter referred to as "BSE". The Appellants appeared to have traded in the said shares (goods) of VCL between May 23, 2002 to June 25, 2002. The case of the Appellants is that they were impressed by the allegedly misleading advertisements published in various newspapers particularly as regards issue of buy-back as well as bonus shares. It is contended by the Appellants that both the schemes of buy-back and bonus shares did not materialize at all. In the process they suffered huge losses. Therefore, they are praying for a direction to SEBI to consider their prayer for grant of compensation for the loss suffered by them in the course of the transaction. They are seeking a direction to get compensation in respect of 1,71,773 shares in question @ Rs.30 per share at least.
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The precise prayers of the Appellants are as under:-
(a) As the BSE has failed to save the investor from the fraudulent and unfair practice adopted by VCL for the promotion of sale of their shares duly listed at BSE for wrongful gain against the land laws of the country as well as SEBI and BSE, BSE and VCL may kindly be ordered to compensate the Complainant/Appellant up to the extent of (a) Rs.51,53,190/- in the name of Appellant No.1 for Rs.1,171,773/- shares @ Rs.30/- per share at least, who has invested her valuable money in the purchase of shares or in alternative Rs.51,53,190/- in the name of joint account holder Smt. Ram Kishore Gupta & H.C. Gupta, after deducting an amount of Rs.4,41,767/- the value of shares sold in the month of may/June 2005 @ average Rs.2,37 per share jointly and severally.
(b) Pendentelite and future interest @ Rs.12% p.a. on the above amount w.e.f. the month of June, 2002 till the date of payment or recovery from the BSE and VCL as both are jointly and severally liable for the payment due to fraudulent and unfair trade practice adopted by them, for the wrongful gain.
(c) That the Respondent No.1 may kindly be ordered to act in accordance with the Act 59 of 2002 u/s 15HA which are mandatory as per law laid by our Hon'ble Supreme Court which is still not decided by the Respondent till date as per confirmation of CPIO/SEBI letter dated 8/8/2010.
(d) Cost of the appeal or any suitable order may kindly be passed in the interest of justice for which the Appellant shall be ever grateful.
The Appellant crave leave to add to alter/amend the above grounds at the time of hearing of the present appeal.
VII. Interim order prayed for-The Appellant most respectfully prayed that the Respondent No.2 & 3 may kindly ordered to deposit the amount of compensation as prayed by the Appellant as well...
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