sebi:WTM/AB/IMD/DoF-1/18928/2022-23
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Facts / Headnote
Proceedings against the Noticee disposed of without any directions
Provisions invoked
- s. 11B
- s. 11
- s. 19
- s. 27
- s. 73
- s. 621
- s. 56
- s. 73(2)
Parties
- Sugyani Charan Nanda
Holding
The proceedings against the Noticee, a director of Dynamic Asset Management Limited, were disposed of without any directions, as the Noticee could not be held liable for refund under Section 73(2) of the Companies Act, 1956 for not being an 'officer in default', and no material showed he attended any board meeting concerning the Offer of RPS.
Full text
Final Order in the matter of Dynamic Asset Management Limited Page 1 of 7 WTM/AB/IMD /DoF - 1/18928/2022-23 SECURITIES AND EXCHANGE BOARD OF INDIA FINAL ORDER
Final Order in the matter of Dynamic Asset Management Limited Page 2 of 7 3. After passing of order dated December 22, 2021 as mentioned in para 1 above, the matter was placed before me on December 31, 2021. A hearing was scheduled on February 09, 2022. The Noticee filed its reply dated February 07, 2022. On the scheduled date of personal hearing, the AR of the Noticee appeared before me and reiterated the submissions made in the reply. The Noticee was granted 10 days’ time to file written submissions, if any. Accordingly, hearing was concluded qua the Noticee. Thereafter, vide email dated February 18, 2022, written
Final Order in the matter of Dynamic Asset Management Limited Page 3 of 7 Merely because a person is a Director would not make him liable for actions of the company if such a director was not in a position of authority of making decisions. In this regard, the Noticee has relied upon judgments including Sayanti Sen Vs SEBI (Appeal no. 163 of 2018), decided by Hon’ble SAT, decisions of Hon’ble Supreme Court in SEBI vs. Gaurav Varshney (2016) 14 SCC 430, Agritech Hatcheries & Food Ltd. vs Valuable Steels India Pvt. Ltd (1999) 96 Com Cases 534 (Mad), Smt. G. Vijaylakshmi & Ors. vs. SEBI (2000) 12 100 Comp Cases 726 (AP) J, Sunil Bharti Mittal vs. Central Bureau of Investigation & Ors. in Criminal Appeal No. 35 of 2015, Municipal Corporation of Delhi v. Ram Kishan Rohtagi and Ors. - (1983) 1 SCC I. iii. The Noticee has submitted that Mr. Saroj Kumar Sahoo being in-charge of Dynamic and also being the Compliance Officer, was mainly responsible for managing the affairs of Dynamic and was therefore solely liable for the alleged violations. iv. The Noticee has stated that immediately after the Noticee's resignation as a director of Dynamic, he was abducted and made to sign various blank papers, one non-judicial stamp paper and 6 blank cheques of IDBI Bank bearing nos.054727 to 054732 on February 14, 2012 for which Noticee has filed a criminal complaint. v. The Noticee has submitted that prior to his resignation from Dynamic he had observed certain issues with regard to the accounting
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Source: SecMarx — sebi:WTM/AB/IMD/DoF-1/18928/2022-23. 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.