BEFORE THE SECURITIES APPELLATE TRIBUNAL
MUMBAI
Date of Decision: 17.05.2021
Misc. Application No. 578 of 2021
In
Appeal No. 333 of 2019
National Stock Exchange of India Limited
Exchange Plaza, Block G, C-1,
Bandra Kurla Complex,
G Block BKC,
Bandra Kurla Complex,
Bandra East,
Mumbai- 400 051 …Applicant
Versus
Securities and Exchange Board of India,
SEBI Bhavan, Plot No. C-4A, G-Block,
Bandra-Kurla Complex, Bandra (East),
Mumbai- 400 051 …Respondent
Mr. Darius Khambata, Senior Counsel with Mr. Somasekhar
Sundaresan, Mr. Abishek Venkataraman, Ms. Sonali Mathur
Mr. Prabhav Shroff and Mr. Harshit Jaiswal, Advocates i/b
AZB & Partners for the Applicant.
Mr. Rafique A Dada, Senior Advocate with Mr. Manish
Chhangani, Mr. Anubhav Ghosh and Mr. Ravishekhar Pandey,
Advocates i/b The Law Point for SEBI
Mr. Nithyaesh Natraj, Advocate for Intervenor.
CORAM: Justice Tarun Agarwala, Presiding Officer
Justice M. T. Joshi, Judicial Member
Per: Justice Tarun Agarwala, Presiding Officer (Oral)
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1. By the impugned order dated April 30, 2019, the appellant
was directed to disgorge an amount of Rs. 624.89 crores along
with the interest at the rate of the 12% per annum w.e.f. April
01, 2014 onwards. An interim order dated May 22, 2019 was
passed by this Tribunal directing the appellant to deposit a sum
of Rs. 624.89 crores with Securities and Exchange Board of
India (“SEBI” for convenience) who in turn were directed to
keep this amount in an interest bearing account and which was
subject to the result of the present appeal. By the said interim
order the court had also directed the appellant to continue with
the escrow account that was opened in the year 2016 in which
all the revenue generated from the Colocation facilities was
required to be deposited. This order was continued on account
of pendency of investigation being conducted by the
respondents.
2. Mr. Dada, the learned senior counsel for the respondent
has fairly stated that the investigation has now been completed
and a note to this effect is being filed before this Tribunal.
3. Mr. Khambata, the learned senior counsel for the appellant
submitted that in this escrow account an amount of more than
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Rs. 6000 crores have now been deposited which the appellant is
unable to use it for their business investments.
4. Mr. Nithyaesh Natraj, the learned counsel for the
intervenor submitted that the interim order should not be
modified as there is no tearing hurry in the matter. It was
contended that the enforcement agencies have also lodged an
enforcement case information report (ECIR) and the matter is
under investigation. Be that as it may. We are of the opinion
that in the given circumstances the order is required to be
modified.
5. Considering the aforesaid fact that the investigation is now
over and, in order to balance the equities, we direct the appellant
to further transfer a sum of Rs. 420 crores to SEBI who in turn,
will keep this amount in the same interest bearing account and
which would be subject to the result of the appeal. Further, the
escrow account can be closed by the appellant and the balance
amount can be utilized by the appellant for their business
purposes. The misc. application is accordingly disposed of.
6. We had reserved the judgement on March 05, 2020 and
soon thereafter the COVID Pandemic kicked in on account of
which the Tribunal could not function for a considerable period
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of time and had no access to the files. Even today no physical
hearing is possible. Now scanned copies are available. Since a
considerable period has elapsed, we direct the matter to be listed
for further hearing on June 11, 2021 along with the connected
appeals. Registry to issue notice to all the parities in all the
connected appeals within a week from today indicating that the
matter would be listed for further hearing on June 11, 2021.
7. The present matter was heard through video conference
due to Covid-19 pandemic. At this stage it is not possible to sign
a copy of this order nor a certified copy of this order could be
issued by the Registry. In these circumstances, this order will be
digitally signed by the Private Secretary on behalf of the bench
and all concerned parties are directed to act on the digitally
signed copy of this order. Parties will act on production of a
digitally signed copy sent by fax and/or email.
Justice Tarun Agarwala
Presiding Officer
Justice M. T. Joshi
Digitally signed
RAJALA byRAJALAKSHMI H
Judicial Member
17.05.2021
PK KSHMI NAIR
Date:
H NAIR 2021.05.20
16:00:46 +05'30'
