GRASIM INDUSTRIES LTD AND Vs. SECURITIES AND EXCHANGE BOARD OF INDIA
SECURITIES APPELLATE TRIBUNAL
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C. Achuthan, Presiding Officer -
(1.) BY these two applications the Applicants are seeking permission to intevene in the present appeal and also to be heard before any order is made.
(2.) The Applicant in Application No.63/2002 ( IGF) has described itself as a "public charitable trust, and also registered with the Respondent SEBI (SEBI) as a duly recognised Investors Association" with 800 members. It is stated to be "espousing the cause of small investors all over India" The object of filing the present Application by IGF has been stated in its Application as follows:
"By this Application, the intervener is seeking leave of this Hon'ble Tribunal to intervene in the present appeal and support investigations by the Respondent in as much as from what is stated herein it will be apparent that the Appellants appear to have played a big fraud on small shareholders of Larsen and Toubro Ltd.," According to the Applicant " If the present Intervention Application is granted, no prejudice would be caused to the Appellants. On the other hand, if the present Application is not granted, substantial prejudice will be caused to the investors who have virtually no protection owing to the huge disparity between what is payable by the Appellants and what the Appellants are deeming it fit to pay".
The Applicant in Application No.64/2002 ( GIWA) has described itself "as a registered association with SEBI & recognised by Government of India, whose objectives inter alia include protection of investors...." The object of filing the present Application by GIWA has been stated in its Application as follows:
"There are several other issues which are required to be brought to the notice of this Hon'ble Tribunal from the point of view of the investors and in view thereof the interveners respectfully pray that this Hon'ble Tribunal may be pleased to grant leave to intervene to the Interveners and the Interveners be heard before any further orders be passed by this Hon'ble Tribunal in the present appeal." It has been further stated therein that "if the present Intervention Application is granted, no prejudice would be caused to the Appellants, whereas, "if the present Intervention Application is not granted, substantial aprejudice will be caused to the investors who are represented by the investors. Therefore also it is in the interest of justice that the Intervener's present application be granted as prayed for."
(3.) THE factual background of filing the present Applications briefly is as follows:
THE context is acquisition of shares of Larsen & Toubro Ltd., (the target company) by the Appellants. THE target company is a public limited company. It has considerable interest in the area of engineering, construction, cement etc. Its shares are listed on the major stock exchanges in India. Grasim Industries Ltd., is a public limited company. Its key business activity is manufacturing and dealing in viscose staple fibre, cement etc. Its shares are also listed on the major stock exchanges in India. Samruddhi Swastik Trading and Investments Ltd. is a wholly owned subsidiary of Grasim Industries Ltd. It is engaged in investment activities. Grasim Industries Ltd. and Samruddhi Swastik Trading and Investments Ltd., (Appellants) are stated to be part of the Aditya Brila Group.;
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