sebi:AO/SBM/EAD-3/58-65/2017
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Facts / Headnote
Proceedings against Noticee No.1 (Sharp Industries Ltd.) disposed of as not maintainable during liquidation without leave under Section 446; joint and several penalty of Rs 2,00,000 imposed on Noticees 2 to 8 under Section 15A(b) of SEBI Act
Provisions invoked
- s. 15A
- s. 15
- s. 15J
- s. 279
- s. 446
Regulations
- Reg. 13
- Reg. 12(1)
- Reg. 199
- Reg. 13(1)
- Reg. 13(3)
- Reg. 3
- Reg. 4
- Reg. 2
- Reg. 11
- Reg. 13(6)
- Reg. 13(5)
- Reg. 29(2)
- Reg. 29(3)
- Reg. 12
- Reg. 29
- Reg. 29(1)
- Reg. 30
- Reg. 10(5)
- Reg. 10(6)
Parties
- Sharp Industries Ltd. (Noticee no.1)
- Bhavana Sheth (Noticee no.2)
- Jyothika Sheth (Noticee no.3)
- Kashmira Sheth (Noticee no.4)
- Sujatha Sheth (Noticee no.5)
- Dhumil V. Sheth (Noticee no.6)
- Vishal Hasmukh Sheth (Noticee no.7)
- Vision Agencies Pvt. Ltd. (Noticee no.8)
Holding
Adjudication proceedings against Sharp Industries Ltd. cannot proceed while the company is under liquidation without leave of the company court under Section 446; Noticees 2 to 8 violated SAST and PIT disclosure obligations for inter-se promoter transfers and are jointly and severally liable to Rs 2 lakh penalty.
Full text
2 on the Bombay Stock Exchange (BSE). As per BSE website, the present status of the company is shown as suspended due to penal reasons. During the relevant period, the total share capital of the company was Rs 19.95 crores (represented by 1,99,52,819 shares of Rs 10/- each).
3 5. Noticees 2 to 8 vide separate letters dated July 7, 2017 submitted their reply to the SCN. It was mentioned that the Company i.e SIL is under Liquidation pursuant to an order passed by the Hon’ble Bombay High Court. A copy of the winding up order of the company passed by the Hon’ble Bombay High Court was also enclosed by the Noticees along with their reply. The relevant excerpts of the reply of the Noticees 2 to 8 are as under: (i) There was an inter-se transfer of 41, 03,485 shares constituting 20.57% of the paid up capital of the company from amongst the promoters of the company on September 11 and September 12, 2013. (ii) The company, Sharp Industries Limited was engaged in the business of supplying flexible packaging materials to Gutkha and Tobacco manufacturers only, and had to close its operations during that period due to nationwide ban on Tobacco manufactures only, and had to close all its operations during that period due to nationwide ban on tobacco and gutkha products with effect from March 31, 2013 pursuant to Hon’ble Supreme Court. (iii) At present, Sharp Industries Limited is under liquidation pursuant to the
4 (i) Sharp Industries Ltd. / Noticee no.1 is under liquidation and the assets of the company have been taken over by the Office of the Official Liquidator. The Company is therefore not in a position to give a reply to the show cause notice. (ii) The winding up Order was passed by the Hon’ble Bombay High Court as a result of the default by the Company to pay its debt to Videocon Industries Ltd. (iii) As required, we are attaching a copy of the order of the Hon’ble High Court of Bombay dated Dec 16, 2015. It has been stated in the Order that since the company has defaulted, official liquidator has been appointed in Company petition no. 171 of 2013. Further, there is no statement that “no legal proceedings should be initiated” in the said
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Source: SecMarx — sebi:AO/SBM/EAD-3/58-65/2017. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.