Suman Motels Ltd. v. SEBI
Case brief
What is this about?
SAT dismissed an appeal filed by M/s. Suman Motels Ltd against a SEBI press release listing entities required to wind up schemes. The Tribunal held that the press release was informational, not an appealable order of command or direction under section 15T of the Securities Act.
What did the court decide?
Appeal dismissed; no substantive relief granted to the appellant.
What the court decided
BEFORE THE SECURITIES APPELLATE TRIBUNAL MUMBAI
APPEAL NO.11/2000
In the matter of:
M/s. Suman Motels Ltd Appellant
Vs.
Securities and Exchange Board of India Respondent
APPEARANCE
Mr.Burzin Somandy Advocate
Ms.Jayashree Nambiar Advocate I/b. Vinod Mistry & Co., for Appellant
Mr. S V Krishna Mohan Division Chief, SEBI for Respondent
ORDER
Securities and Exchange Board of India, the Respondent herein, had issued a Press Release – PR-109/2000 on 16.5.2000 on the subject "CIS" entities who have to compulsorily wind up their schemes and make payment to the investors latest by May 28, 2000". The text of the said Press Release is as follows:
Issues for consideration
2 issues framed by the court
Whether a press release notifying entities needing to wind up schemes constitutes an appealable order under section 15T of the SEBI Act.
Whether the SEBI press release containing statutory warnings and names can be challenged as an order commanding action.
Parties & counsel
- appellant
M/s. Suman Motels Ltd
- respondent
Securities and Exchange Board of India
Coram
C. Achutan
Case details
As recorded by the court registry
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