Decided on October 13,2003



C.Achuthan, - (1.) THE present appeal is directed against the Respondent's orders dated 7.12.2000 and 2.7.2001. As the Appellant was operating collective investment scheme even before the notification of the Securities and Exchange Board of India (Collective Investment Scheme) Regulations 1999 (the Regulations) on 15.10.1999, and being an "existing collective investment scheme" it was required to comply with the specific provisions applicable to such existing collective investment schemes. Since it failed to comply with the requirements of the Regulations, the Respondent vide its order dated 7.12.2000 directed the Appellant and other existing collective investment scheme operators who had failed to comply with the Regulations, to refund the money collected under the schemes with the returns to the investors as per the terms of the offer within a period of one month from the date of the order. THE order also indicated the consequences that would visit those who fail to comply with the directions. THE Appellant did not comply with the directions. In that context the Respondent on 2.7.2001 issued directions under section 11B of the SEBI Act, 1992, read with regulation 65,73 & 74 of the Regulations debarring the Appellant and the operators of other collective investment schemes who had failed to comply with the directions issued on 7.12.2000 and their promoters/directors etc. from operating in the capital market for a period of 5 years. THE Appellant had challenged the Respondent's order in the Hon'ble Karnataka High Court by filing Writ Petition. THE Writ Petition was dismissed. On dismissal of the Writ Petition an appeal was filed before the Division Bench. It was also dismissed. THE Hon'ble High Court did not grant any relief. THEreafter the Appellant filed the present appeal in the Tribunal on 7.11.2002. THE Registry noticed certain deficiencies in the appeal and returned the same. Appellant resubmitted the appeal on 5.12.2002 after making good the deficiencies pointed out by the Registry. When the appeal was taken up on 13.3.2003, the Appellant sought adjournment "atleast by 2 months". Adjournment was granted. Taking into consideration the convenience of the Appellant and the Respondent the matter was posted for disposal on 10.6.2003. On 10.6.2003, when the matter was called, the Appellant sought adjournment again, on the ground that its counsel was not well and therefore not available. Again taking into consideration the convenience of the parties, the matter was adjourned to 25.7.2003. When the matter was taken up on 25.7.2003, learned Counsel again sought adjournment by 2 months to enable him to file an affidavit stating the extent of compliance of the Respondent's order. What transpired on 25.7.2003 is evident from the following minutes of the proceedings on 25-7-2003.
(2.) "Learned Counsel for the Appellant submitted that the Appellant is in the process of selling some of its immovable properties with a view to raise funds to repay the unit holders, and there is every possibility of the deal coming through and getting money. He submitted that such a positive action from the Appellant would be beneficial to the investors. Learned Counsel submitted that he will file an affidavit affirmed by the Appellant's authorised person in support of his statement, with in one week from today. In this context he seeks adjournment of the case atleast by 2 months. Shri Praveen Trivedi, learned Representative of the Respondent submitted that the Appellant is only delaying the appeal proceedings and taking into consideration its past conduct, it is doubtful as to whether it is sincerely making any effort to make the payment to the unit holders.
(3.) IN view of the submission made by the learned Counsel and that he has agreed to file an affidavit in support of the same the Appellant's request for adjournment is granted. Learned Counsel will ensure that the affidavit, as promised by him, will be filed with the Tribunal by 4.8.2003.;

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