2018 (7) TMI 1900

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.... Kewizun, learned counsel for respondent No.2. Petitioner No.1 is a public limited company incorporated under the provisions of the Companies Act, 1956 having its registered office at Dibrugarh and is represented by petitioner No.2, Managing Director. Petitioners are primarily aggrieved by the letter dated 09.06.2017 of the Govt. of India, Ministry of Corporate Affairs addressed to the Chairman, Securities Exchange Board of India (SEBI) forwarding a CD regarding the database of 331 listed shell companies for initiating necessary action by the SEBI. The said letter was issued on the basis of the Office Memorandum (OM) dated 23.05.2017 of the Govt. of India, Ministry of Corporate Affairs, Serious Fraud Investigating Office. From a pe....

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.... for an interim order in terms of the prayer made in the petition. Mr. Keyal submits that he would like to file an affidavit. Issue notice of motion, returnable on 22.6.2018 No formal steps are called for with regard to respondent Nos. 1 and 3 as they are duly represented. However, extra copies be served. Steps on respondent No. 2 by registered post with A/D. Issue notice also on the interim prayer, returnable on 22.6.2018." Mr. Saha, learned Senior counsel, submits that there is no statutory definition of shell company in either fiscal or in the penal statutes. There is also no judicially evolved definition of shell companies. He submits that as per the definition given in Concise Oxford Engl....

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.... order may be passed as any such interim order may adversely impact the proceedings before the SEBI. Supporting the submissions made by Mr. Keyal, Ms. Hazarika, learned Senior counsel, submits that proceedings before the SEBI may be permitted to continue where petitioners would get adequate opportunity to defend themselves. Submissions made by learned counsel for the parties have been considered. As would be evident from the order dated 08.05.2018, today is fixed for consideration of the interim prayer. In this connection, let us advert back to the impugned letter dated 09.06.2017. Prima facie, this letter declares petitioner No.1 company to be a shell company. This declaration of petitioner No.1 as a shell company as discussed abo....