TaxTMI 
TaxTMI 
2021 (9) TMI 1524
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....l trades and had made unlawful gains and the appellants were directed to disgorge the amount so calculated jointly and severally. 2. The facts leading to the filing of the present appeal is, that investigation was conducted in the trading of the scrip of Polytex India Limited for the period 13th April, 2012 to 17th December, 2012. Based on the investigation an ex-parte ad-interim order dated 10th May, 2013 was passed restraining the eleven entities from accessing and dealing in the securities market either directly or indirectly. Subsequently, the ex-parte ad-interim order was confirmed on 7th January, 2014. Thereafter, an impounding order was passed on 20th August, 2015. 3. Subsequently, a show cause notice dated 30th December, 2016 was issued alleging that the trading noticees received funds from the financing notices which were directly transferred to the stock brokers against the pay in obligation of the trading noticees. The show cause notice also alleged synchronized trading, reversal trading and self-trading amongst themselves which resulted in creating artificial volume and contributed to the positive Last Trade Price ('LTP' for short) and, thus, the noticees made unl....
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....ant in Appeal No. 207 of 2019) to the extent of the legally permissible debit amount. (b) In respect of other 11 appeals while upholding the finding in the impugned order that the appellants have violated provisions of SEBI Act and PFUTP Regulations and therefore upholding the direction relating to the restraint imposed on the appellants we remit the matter to SEBI with the following directions:- (i) Bring out date-wise details of reversal trades in respect of the trading noticees. (ii) Bring out details of calculation of profits in respect of all the trading noticees. (iii) SEBI shall provide (i) and (ii) above to all the appellants and thereafter recalculate the amount of disgorgement against the appellants and pass an order within three months from the date of this order after giving an opportunity of hearing. 35. All appeals are disposed off with the aforesaid directions. No orders on costs." 7. Pursuant to the remand by this Tribunal, the WTM passed a fresh order dated 31st July, 2020 holding that the appellants had indulged in reversal trading and recalculated the ill-gotten gains amounting to Rs.2,69,93,016.79 and, accordingly,....
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....details of reversal trades in respect of the trading noticees and bring out details of calculations of profits in respect of all the noticees. 12. It is correct that the date wise details of reversal trades in respect of the trading noticees qua the appellants have not been provided in the impugned order and, to that extent, the appellants are justified in contending that the order of this Tribunal has not been complied with. But we are of the opinion that by not providing these details in the impugned order the impugned order does not get vitiated for the reasons stated hereunder. 13. We find that the details of these reversal trades is voluminous and runs into several pages. However, such details were duly provided to the appellants as per our directions given in para 34(b)(iii). We also find that no finding has been given with regard to which trade is a reversal trade with another trading noticee and even though such finding is not given in the impugned order. A general finding has been given that all the trades, the details of which were supplied to the appellants were reversal trades. We also find that no objection was raised by any of the appellants that this trade is n....
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....nyei v. New India Assurance Company Ltd & Ors (2015) 9 SCC 273 held as under: "3. It is a case of composite negligence where injuries have been caused to the claimants by combined wrongful act of joint tortfeasors. In a case of accident caused by negligence of joint tortfeasors, all the persons who aid or counsel or direct or join in committal of a wrongful act, are liable. In such case, the liability is always joint and several. The extent of negligence of joint tortfeasors in such a case is immaterial for satisfaction of the claim of the plaintiff/claimant and need not be determined by the court. However, in case all the joint tortfeasors are before the court, it may determine the extent of their liability for the purpose of adjusting inter-se equities between them at an appropriate stage. The liability of each and every joint tortfeasor vis-a-vis to plaintiff/claimant cannot be bifurcated as it is joint and several liability. In the case of composite negligence, apportionment of compensation between tortfeasors for making payment to the plaintiff is not permissible as the plaintiff/claimant has the right to recover the entire amount from the easiest targets/solvent defe....
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....cept of disgorgement under the SEBI laws is based on the principle that a person in possession of wrongful gains by which he is enriched may be asked to part with the amount equivalent to such gains alongwith interest. 22. Black's Law Dictionary defines disgorgement as "The act of giving up something (such as profits illegally obtained) on demand or by legal compulsion." To disgorge means to deprive a person of the value by which he is unjustly enriched. Further, disgorgement is an equitable remedy designed to deprive a wrong doer of his unjust enrichment. It aims in ensuring that a person in possession of the wrongful gain does not continue to enjoy them. Section 11B of the Act only talks about disgorgement of unlawful gains/profits. The concept of "net profits" is not existing in Section 11B but the same has been carved out by Courts exercising equitable jurisdiction. Some Courts have granted only deduction of statutory dues, others have granted other legitimate expenses. In this regard, the learned senior counsel for the respondent fairly pointed out the decisions of the American Courts wherein divergent opinion of deductions have been made especially the decision of Charles ....