PUR OPALE CREATIONS LTD. Vs. SECURITIES & EXCHANGE

JUDGEMENT

(1.) THIS order will dispose of a bunch of seven appeals nos. 27, 27A to 27F/2005, which are directed against the same impugned order and in which common questions of law and fact arise. Since arguments were addressed in appeal no. 27/2005, the facts are being taken from this case. Counsel for the parties are agreed that the decision in this appeal will govern the other cases as well.

(2.) THIS appeal filed under Section 15T of the Securities and Exchange Board of India Act, 1992 (for short œthe Act ) is directed against the order dated 8.9.2004 passed by the Securities and Exchange Board of India (hereinafter called the œBoard ) whereby appellant no. 1 was identified as a vanishing company and a direction issued to it and its Directors under sections 11(1) and 11B of the Act directing them to disassociate themselves in every respect from the capital market related activities and not to access the capital market for a period of 5 years. The public companies in which the directors of appellant no. 1 held controlling or substantial interest have also been restrained from raising funds from the capital market for a period of 5 years.

(3.) PUR Opale Creations Ltd. (hereinafter called œthe Company ) along with its Directors are the appellants before us. The findings recorded by the Board that the Company is a fly -by -night operator and that it is a vanishing company and that having raised money from the public is not traceable are under challenge. The Company came out with a public issue through a prospectus dated 29.12.1992 and the issue opened on 4.2.1993 and the latest closing date was 15.2.1993. It was mentioned in the prospectus that the appellants had made an application to the Stock Exchanges at Vadodara, Mumbai, Hyderabad, Delhi and Ahmedabad for listing of shares. After the public issue, the shares of the Company were listed at Ahmedabad and Vadodara Stock Exchanges.