Exclusive Special Court jurisdiction over securities transactions involving notified persons required transfer of the proceeding

Transactions in securities entered into between 1 April 1991 and 6 June 1992 involving a notified person fell within the amended Special Court Act jurisdiction, because section 9A conferred on the Special Court the powers earlier exercisable by civil courts in such matters. Pending suits, claims and other proceedings, other than appeals, were required to be transferred where the cause of action would now lie before the Special Court. As the transaction fell within the interregnum period and involved a notified person, the proceeding could not continue before the High Court and was transferred to the Special Court.

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Issues: Whether the company appeal and connected proceedings arising out of transactions in securities entered into during the relevant period, involving a notified person, were within the exclusive jurisdiction of the Special Court and liable to be transferred from the High Court.

Analysis: The Special Court Act, as amended by insertion of section 9A, conferred on the Special Court all jurisdiction, powers and authority earlier exercisable by civil courts in matters arising out of transactions in securities entered into between 1 April 1991 and 6 June 1992, where a notified person was involved. The statutory scheme also mandated transfer of pending suits, claims and other legal proceedings, other than appeals, if the cause of action would fall within the Special Court's jurisdiction after the amendment. The transaction in question fell within the interregnum period, and the record disclosed involvement of a notified person in the securities transaction. In light of the amended jurisdictional bar and the construction placed on the provision by the Supreme Court, the matter could not continue before the High Court.

Conclusion: The proceeding was held to fall within the exclusive jurisdiction of the Special Court and was ordered to be transferred there.

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