PACL INDIA LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) IN D.B. Writ Petition No. 6735/99, the petitioner has prayed that respondent SEBI be directed to withdraw their instructions dated 10 -12 -1999 and also quash the letter dated 30 -11 -1999 issued by respondent No. 2 addressed to petitioner No. 1 and further prayed that provisions of Section 11AA and Sub -section (IB) of Section 12 of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as 'the Act, 1992') be declared ultra vires the Constitution of India insofar as it includes 'Collective Investment Schemes'. The petitioner has further prayed that Regulations [Securities and Exchange Board of India (Collective Investment Schemes) Regulations, 1999] (hereinafter referred to as 'the Regulations, 1999') be declared ultra vires the Constitution of India being inconsistent with and in derogation of the Companies Act, 1956 and these Regulations should not be given effect.

(2.) IN D.B. Writ Petition No. 6747/1999, the validity of similar provisions are challenged and further prayed that directions or maridamus be issued to respondents that scheme of PACL India Ltd, is not subject to the Regulations, 1999.

(3.) IN both the petitions, the petitioners have prayed that direction be given to respondents that the scheme of PACL India Ltd. is not covered under the definition of 'Collective Investment Scheme' as defined under Section 11AA of the Act, 1992. Alternatively, it has been prayed that if the view is taken that the scheme of petitioner PACL India Ltd. is covered under the definition of 'Collective Investment Scheme', in that case the provisions of Section 11AA as well as Sub -section (IB) of Section 12 of the Act, 1992 be declared ultra vires the Constitution, and also the Regulations so far as they are made applicable in the case of PACL India Ltd. be declared ultra vires and inconsistent to Companies Act and other Acts.