SUDHIR S MEHTA Vs. CUSTODIAN

JUDGEMENT

(1.) These appeals are by way of a challenge to the order dated 02.11.2007 passed by the Special Court of Bombay constituted under the Special Court (Trial of Offences Relating to Transactions in Securities) Act (hereinafter referred to as 'the Act'). By the impugned common order, Miscellaneous applications filed by Mr. Sudhir S. Mehta, Ms. Deepika A. Mehta, Mr. Ashwin B. Mehta, Gromore Research Assets Management Ltd., Ms. Jyoti S. Mehta and Mr. Hitesh S. Mehta, as also Ms. Pratima Mehta were disposed of by the learned single Judge. In that order, the Special Court directed the Custodian under the Act to refer two questions for the opinion of Disposal Committee. They were :

(2.) All the common questions have arisen on account of the advertisements issued by the Custodian dated 28.10.2007 for the sale of the shares of Reliance Industries Ltd. As many as 24, 26, 376/- shares belonging to the individual appellants and 1, 75, 316 shares belonging to Fairgrowth Financial Services Ltd. and 5,300/- shares belonging to Mr. N.K. Aggarwal were covered by these advertisements. It was stated in the advertisements that these shares would be sold in bulk categories and the offers were to be submitted on or before 1.11.2007. Accordingly, the offers were received by the Custodian and the same were considered by the Disposal Committee, and the Custodian submitted his report for sale of the shares in favour of the Life Insurance Corporation of India (LIC of India), as the LIC of India had offered the highest price at the rate of Rs.2,701/- per share.

(3.) At this stage, the objections were raised by way of the Miscellaneous Applications before the Special Court at the instance of the appellants herein. The common grievances made in these objections cum applications were: