TIRUPATHI KUMAR Vs. SECURITIES AND EXCHANGE BOARD OF INDIA REP.BY ITS GENERAL MANAGER INVESTIGATION DEPARTMENT MITTA COURT, B WING

JUDGEMENT

(1.) Having been unsuccessful in the challenge made to the respective impugned orders dtd. 20/7/2004, 15/8/2004, 16/8/2004, 15/9/2004 passed by the respondent in Reference No.IVD/ID4/KVRR/PS/2004 with the accompanying summons issued under Sec. 11-C(3), (5) and (6) of the Securities and Exchange Board of India Act, 1992 before the learned single Judge, the appellants/writ petitioners have preferred these writ appeals.

(2.) According to the respondent, the appellants/writ petitioners were involved in the business of buying, selling or dealing in shares of M/s Sai Televisions Limited during the period between April, 2001 and June, 2002 and by means of the orders impugned in the writ petitions, they were directed to furnish the details/information for such transactions held by them to enable the investigating authority to investigate into the allegations.

(3.) It is the claim of the appellants that the respondent/Securities and Exchange Board of India (for short, 'the Board') was established in the year 1988 by a Government resolution to promote orderly and healthy growth of the securities market. For the reason that the capital market in India witnessed a tremendous growth with increasing participation of the public, the Government of India, to sustain the investors confidence, decided to vest the Board with statutory powers. Therefore, the President of India promulgated the Securities Exchange Board of India Ordinance, 1992, since the Parliament was not in session. Later on, the Securities Exchange Board of India Act, 1992 (for short, 'the Act)' was enacted replacing the said Ordinance. The Act has been amended from time to time vesting certain powers with the Board and Sec. 11 of the Act defines the power of the Board. Additional powers were also vested with the Board by the amendment in the year 2002 by inserting Sec. 11-C through Act 59 of 2002 with effect from 29/10/2002 vesting investigative powers on the Board giving a prospective effect subject to the conditions enumerated under Sec. 11-C(1)(a) and (b) of the Act.