(1.) This application is directed against an order dated February 1, 1994, passed by the Joint Director (SE), Government of India, Ministry of Finance, Department of Economic Affairs, in exercise of his powers conferred upon him under Section 22 of the Securities Contracts (Regulation) Act, 1956, allowing the appeal preferred by Coventry Spring and Engineering Company Limited, respondent No. 5 (hereinafter called and referred to as "the company"), against a purported deemed order of rejection of the Calcutta Stock Exchange Association Limited, respondent No. 3 herein relating to the application filed for listing of the shares. The facts of the matter are as follows :
(2.) On or about February 24, 1993, the company offered 21,70,000 equity shares of Rs. 10 each at a premium of Rs. 35 per share aggregating to Rs. 976.50 lakhs to the public for subscription on terms and conditions contained in the prospectus which is contained in annexure "A" to the writ application. In terms of the said prospectus the public issue was to open on March 30, 1993, and the first date of closing thereof was April 3, 1993, whereas the last date of closing was April 10, 1993. The petitioner applied for allotment of 100 shares on April 7, 1993. On June 5, 1993, a publication was issued in the daily newspaper Business Standard wherein the following particulars were stated : (i) The total number of shares that have been applied for pursuant to the said public issue was only 1,24,800 as against 21,70,000 shares offered to the public for subscription. (ii) The total number of applications received were 1,036. (iii) The total amount of money which had been deposited pursuant to the said offer was Rs. 28,08,000. (iv) Only 5.75 per cent. of the issue had been subscribed.
(3.) The contention of the petitioner is that 120 days having expired from February 24, 1993, i.e., the date of first issue of the shares, and as no permission has been granted by the concerned stock exchanges permitting shares of the company being offered to the public to be dealt with in any of the stock exchanges and only 5.75 per cent. of the said issue has been subscribed to the company as also in view of the fact that guidelines for listing of securities on recognised stock exchanges in terms of the circular letter dated November 2, 1992, as also the provisions of sections 69 and 73 of the Companies Act, 1956, having not been satisfied, the company was under an obligation to forthwith refund all moneys received from the applicants. It is, however, admitted that the company obtained relaxation in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, to the effect that in place and instead of 60 per cent. of the shares offered to the public it might offer 41.33 per cent. thereof.
ABOUT US "REGENT COMPUTRONICS PVT. LTD." is a Company incorporated in 1991 under the provisions of the Companies Act, 1956. Since its inception to 1995, the Company was busy in carrying out the activities related to various Banks' Job Work..
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