Appeal No. 19 of 2013. Case: Teakwood Management Services Pvt. Ltd. Vs Securities and Exchange Board of India. Securities and Exchange Board of India

Case NumberAppeal No. 19 of 2013
CounselFor Appellants: Mr. P.N. Modi, Senior Advocate with Mr. N.P. Lashkari and Ms. Akshaya Bhansali, Advocates and For Respondents: Mr. Kumar Desai, Advocate with Ms. Harshada Nagare, Advocate
JudgesP.K. Malhotra, Member & Presiding Officer & Jog Singh, Member
IssueSecurities and Exchange Board of India Act
Judgement DateMarch 22, 2013
CourtSecurities and Exchange Board of India


P.K. Malhotra, Member & Presiding Officer

  1. This appeal is directed against the order dated August 21, 2009 passed by the whole time member of the Securities and Exchange Board of India (for short the Board) confirming the ex parte ad interim order dated April 23, 2009 passed pending investigations in the scrip of Pyramid Saimira Theatre Limited. The ex parte order was passed restraining the appellant and others from accessing the securities market pending investigation. We are informed that the investigation in the matter was concluded on July 31, 2010. It is the case of the appellant that in spite of the investigation having been completed and the repeated representations made by the appellant, the Board has not taken any further action. The appellant also states that the directions issued by the Board against the appellant are being continued even after the passage of more than three years. The Board has neither initiated any action nor it has taken any steps to discontinue such harsh directions against the appellant. It is, therefore, prayed that the impugned order be set aside.

  2. When the matter was taken up for hearing today, learned counsel for the respondent Board has placed on record a copy of the show cause notice dated March 21, 2013 passed by the Board in pursuance of the investigation carried out by it. The appellant is required to furnish its reply in response to the said show cause notice which will be considered by the Board and it was stated, on instructions, that the Board will pass a final order in the matter within a period of three months from the date of receipt of reply to the show cause notice from the appellant. Since the Board has already issued a show cause notice after completion of the investigations, it was submitted that in view of the changed scenario, no interference is called for by the Tribunal at this stage.

  3. Learned senior counsel for the appellant stated that the show cause notice has not yet been served. Learned counsel for the Board submitted that it will be served on the appellant during the course of the day.

  4. We have heard learned counsel for the parties for some time. We take note of the fact that as per Board's own admission, the investigations in the matter were concluded on July 31, 2010. However, it issued show cause notice to the appellant only on March 21, 2013 i.e. immediately after the appellant approached this Tribunal for relief. We...

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