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2019 Supreme(SC) 704
SUPREME COURT OF INDIA
Sanjiv Khanna, B.R. Gavai, JJ.
IL AND FS SECURITIES SERVICES LTD. – Appellant
Versus
SECURITIES AND EXCHANGE BOARD OF INDIA AND OTHERS – Respondent
Civil Appeal Nos. 5104-5105 of 2019
Decided on : 26-06-2019
For the Appellant : Mr. K.V. Vishwanathan, Sr. Adv., Ms. Gauri Rasgotra, Adv., Ms. Shruti Rajan, Adv., Ms. Garima Joshi, Adv., Mr. Sumit Attri, AOR, Mr. Vikash Kumar Jha, Adv., Mr. Aditya Sikka, Adv., M/S. Cyril Amarchand Mangaldas Aor, AOR
For the Respondent No. 1: Mr. Tushar Mehta, SG, Mr. Pratap Venugopal, Adv., Ms. Surekha Raman, Adv.
For the Respondent No. 2: Mr. Shekhar Naphade, Sr. Adv., Mr. Ashish Prasad, Adv., Mr. Abhiraj Arora, Adv., Mr. Rajesh J., Adv., Mr. M.P. Devanath, Adv., Mr. Mahfooz Ahsan Nazki, AOR, Mr. Kapil Sibal, Sr. Adv., Mr. Sahil Narang, Adv., Mr. Saransh Kumar, Adv.,
For the Respondent No. 3: Mr. Bharat Sangal, Sr. Adv., Mr. Rashid Bootwala, Adv., Ms. Babita Kushwaha, Adv., Ms. Vidushi Garg, Adv., Mr. Kartik N., AOR, M/S. Khaitan & Co., AOR, M/S. K J John And Co, AOR
The court has the discretion to grant interim protection and stay of payment obligation under the option contract based on the limited prayer made by the applicant/appellant.
Headnote:
Appeal - Securities Law - The court granted interim protection with regard to payment under the option contract until the first hearing by the Appellate Authority, allowing the applicant/appellant to file proceedings challenging the order dated 24.06.2019 with an application for stay in accordance with law.
Fact of the Case:
The applicant/appellant sought interim protection with regard to payment under the option contract and indicated the intention to file an appeal before the Securities Appellate Tribunal, Mumbai.
Finding of the Court:
The court granted interim protection and directed the applicant/appellant to file proceedings challenging the order dated 24.06.2019 on or before 27.06.2019 with an application for stay in accordance with law. The civil appeals were disposed of as infructuous.
Issues: Interim protection with regard to payment under the option contract, appealability of the order dated 24.06.2019, and disposal of civil appeals.
Ratio Decidendi: The court's decision was based on the limited prayer made by the applicant/appellant, allowing them to file proceedings challenging the order and granting stay of payment obligation under the option contract until the first date of hearing before the relevant Forum/Court.
Final Decision: The court granted interim protection and directed the applicant/appellant to file proceedings challenging the order dated 24.06.2019 on or before 27.06.2019 with an application for stay in accordance with law. The civil appeals were disposed of as infructuous.
ORDER
I.A.No. 91268/2019
1. Learned senior counsel for the applicant/appellant has drawn our attention to Prayer 'C' of the application and states that the applicant/appellant would be preferring an appeal before the Securities Appellate Tribunal, Mumbai, on or before 27.06.2019 and interim protection with regard to payment under the option contract may be granted till the first hearing by the Appellate Authority.
2. Learned Solicitor General appearing for the Securities and Exchange Board of India (SEBI) has submitted that the order dated 24.06.2019 is not appealable.
3. Learned counsel appearing for the applicant/appellant submits that this aspect will be examined and a writ petition/appeal will be filed before the jurisdictional High Court/Appellate Forum on or before 27.06.2019.
4. We have heard learned senior counsel for the respondent nos.2 and 3, who have drawn our attention to the relevant provisions.
5. Keeping in view the limited prayer made by the applicant/appellant, we dispose of the present application by directing that the applicant/appellant may file/prefer, in terms of the statement made, proceedings challenging the order dated 24.06.2019 on or before 27.06.2019 with an application for stay in accordance with law. There would be stay of payment obligation under the option contract till the first date of hearing before the relevant Forum/Court. We further clarify that in case the applicant/appellant delays or otherwise there is delay in listing of the matter, it will be open for the respondents to point this out to the appropriate Forum/Court and ask for vacation of stay. We clarify that we have not expressed any opinion on the merits and all questions are left open. It will be open to the Forum/Court to vacate, extend or modify the stay of payment order passed by us.
Civil Appeal No(s).5104-5105/2019
6. In view of the order passed above, we do not think anything survives in the aforesaid civil appeals. They are accordingly disposed of as infructuous, again recording that we have not expressed any opinion on merits.
