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Judgment
We have heard Shri Janak Dwarkadas, the learned senior counsel for the appellant and Mr. Venkatesh Dhond, the learned senior counsel for the
respondent Nos. 1 through video conference.
The present appeal has been filed against the order of the WTM by which the appellant has been directed to disgorge an undue gains made for a
transaction in December 2007 and April 2008. One of the contentions which arise for consideration is whether there has been an undue delay in the
initiation of the proceedings when the transactions were made on the platform of the stock exchange. Further whether the valuation pertaining to the
reorganization of the company as disclosed on April 16, 2008 which amounts to a deemed price sensitive information under Securities and Exchange
Board of India (Prohibition of Insider Trading) Regulations, 1992 as it amounts to changes in policy, plans and operation of the company. This requires
consideration. Let a reply be filed by the respondent within three weeks from today. Rejoinder may be filed within a week thereafter. The matter
would be listed for admission and for final disposal on February 10, 2021 alongwith appeal lodging No. 582 of 2020 (Vikramaditya Chandra vs. SEBI).
In the meanwhile, we direct the appellant to deposit 50% of the disgorged amount before the respondent within four weeks from today. If the said
amount is deposited the balance amount shall not be recovered during the pendency of the appeal. The amount so deposited would be kept in an
interest bearing account and would be subject to the result of the appeal. Urgency and stay application is disposed of accordingly.
Parties will take instructions from the Registrar 48 hrs. before the date fixed in order to find out as to whether the appeal would be heard through
video conference or through physical hearing.
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.