APL INDUSTRIES LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) By an order dated 22.5.1998 the Chairman, Securities and Exchange Board of India (for short the Board) exercising the powers of the Board held that the public issue of 30 lacs equity shares floated by the petitioner-Company was under subscribed and, therefore, in terms of Section 11-B read with Section 11(1) of the Securities and Exchange Board of India Act, 1992 (hereinafter called the SEBI Act) a direction was issued to the petitioners to refund all the monies collected in respect of the public issue from the applicantsr with interest as applicable under the provisions of the Companies Act, 1956. It is this order which is now under challenge before us in this petition filed under Article 226 of the Constitution. A mandamus is also sought for a direction to the Union of India to hear the appeal filed by the petitioners under Section 22 of the Securities Contracts (Regulation) Act, 1956 (referred to as the 1956 Act).

(2.) In response to the notice of motion the respondents have put in appearance. Respondent No. 2 has filed its written statement and put in appearance through its counsel. It is pleaded that the impugned order is appealable under Section 20 of the SEBI Act which remedy the petitioner has not availed. It is also averred that the Central Government has not received any appeal alleged to have been filed by the petitioners under Section 22 of the 1956 Act.

(3.) Since an alternative remedy is available to the petitioners under Section 20 of the SEBI Act we decline to interfere in the matter in the exercise of our extraordinary jurisdiction and relegate the petitioners to the remedy under the aforesaid provisions. We, therefore, decline to examine the merits of the impugned order. An application for condonation of delay, if any, and if filed will be disposed of by the Appellate Authority on its own merits and in accordance with law. As regards the appeal said to have been filed under Section 22 of the 1956 Act, there is controversy between the parties whether the same was even filed or received by the Central Government. However, if any such appeal was filed, the Central Government will dispose of the same in accordance with law.