B S V Prakash Kumar, J. - (1.) It is a Company Application filed by the Resolution Professional assailing the Order of Delisting passed by Bombay Stock Exchange delisting the shares of the Corporate Debtor Company along with other Companies on 21.8.2017 with reliefs as follows: (a) To declare that the order of V and 2 Respondents i.e. Bombay Stock Exchange Ltd. and National Stock Exchange Ltd. to delist the si tares of the Corporate Debtor and consequential impact that they are under SEBl Laws including the delisting Regulations of the Corporate Debtor as illegal and void in view of the provisions of section 14/238 of the Insolvency & Bankruptcy Code, 2016. (b) To direct the Respondents not to deal with the shares of the Corporate Debtor pending Moratorium granted by this Tribunal. (c) To direct the Respondents to list the shares of the Corporate Debtor back on the Stock Exchanges operated by them pending validity of Moratorium passed by this Bench under section 14 ofl&B Code. (d) To declare the provisions of SEBI hues including Delisting Regulations to the extent such provisions are inconsistent with the provisions of l&B Code not applicable to the Companies which are under Corporate Insolvency Resolution process under l&B Code. (e) Any other relief or reliefs in favor of the Applicants as this Tribunal deem fit and proper.
(2.) This Applicant has made not onlv the Stock Exchanges as parties but also SEBI as R-3, Ministry of Corporate Affairs as R-4 impugning the notice dated 21.8.2017 given under Rule 21(2) (b) of the Securities Contract (Regulation) Rules 1957 delisting the shares of the Corporate Debtor from its Exchange. This Applicant submits that this Corporate Debtor is not under liquidation as mentioned by the First Respondent annexed to the Notice mentioned (BSE) . The Applicant submits that the Whole-time Directors, Promoters and group Companies shall be debarred from accessing the Companies securities from the market for a period of 10 years and the Corporate Debtor if debarred from access to securities for a period of 10 years from the date of compulsory date of delisting as envisaged under Regulations 24 of SEBI Delisting Regulations, it will affect the revival of the Corporate Debtor whereby the Insolvency Resolution Professional has filed this Company \pplication under the assumption that moratorium declared under sec. 14(1) (a) of I&B Code, 2016 prohibits the Stock Exchanges from delisting the shares from the Exchanges.
(3.) The Applicant Counsel has propounded his argument on the premise that for the power has been conferred upon the Resolution Professional under section 35 (2) of the Code to consult all the stake holders entitled to distribution of proceeds u/s 53 of the Code, he says that delisting of shares shall not be permitted, the reason he quoted is that the shares of the company would come to zero value.;