Case Law Details
Swojas Energy Foods Vs SEBI (Bombay High Court)
Heard Mr.Shenoy, learned counsel for the petitioners; Ms.Singh, learned counsel for respondent No.1, Mr.Walve, learned standing counsel, revenue for respondent No.2; Mr.J.B.Mishra, learned counsel for respondent No.3; and Mr.Modi, learned senior counsel alongwith Mr.Anubhav Ghosh, learned counsel for respondent No.5.
2. Though a number of prayers have been made by the petitioners, the principal grievance of the petitioner was highlighted in our order dated 27th January, 2021, when we had issued notice. Relevant portion of the order dated 27th January, 2021 reads as under:-
“2. Petitioners are aggrieved by freezing of their demat accounts by respondent No.5 on the ground of “statutory order”. Learned counsel for the petitioners submits that firstly respondent No.5 is not a statutory authority. Therefore, it has got no power for freezing of demat accounts. Secondly, there is no such order by any statutory authority for freezing of the demat accounts of the petitioners. Impugned action of respondent No.5 is therefore wholly without jurisdiction besides being unjust and unfair causing substantial loss to the petitioners.”
3. Today when the matter is called upon, Mr.Modi, learned counsel for respondent No.5 has raised a preliminary objection contending that against the order dated 6th January, 2020 passed by the Securities Appellate Tribunal, Mumbai in the appeal of the petitioners against freezing of its demat accounts, petitioners had filed statutory appeal before the Supreme Court being Civil Appeal No.2191 of 2020 which was however dismissed by the Supreme Court on 15th October, 2020. In such circumstances, it is not open to the petitioners to re-agitate the same set of grievances in the present writ petition.
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SEBI is acting in irresponsible way in freezing promoters d’mat accounts without verification of their role administrators decisions. It’s like punishing innocent