BEFORE THE SECURITIES APPELLATE TRIBUNAL
MUMBAI
Date of Decision: 17.12.2019
Date of Decision: 18.12.2019
Review Application No. 29 of 2019
In
Appeal No. 238 of 2019
Securities and Exchange Board of India
…Applicant
(Orig. Respondent)
Versus
In the matter of
1. Mr. Rakesh Singh Narwaria
2. Mrs. Girja Narwaria
72, Shiv Nagar, Birla Nagar,
Gwalior, Madhya Pradesh- 474 004
…Appellants
Versus
Securities and Exchange Board of India,
SEBI Bhavan, Plot No. C-4A, G-Block,
Bandra-Kurla Complex, Bandra (East),
Mumbai – 400 051
…Respondent
AND
Review Application No. 29 of 2019
In
Appeal No. 239 of 2019
Securities and Exchange Board of India
…Applicant
(Orig. Respondent)
Versus
In the matter of
1. Mr. Rakesh Singh Narwaria
2. Mrs. Girja Narwaria
72, Shiv Nagar, Birla Nagar,
Gwalior, Madhya Pradesh- 474 004
…Appellants
2
Versus
Securities and Exchange Board of India,
SEBI Bhavan, Plot No. C-4A, G-Block,
Bandra-Kurla Complex, Bandra (East),
Mumbai – 400 051
…Respondent
Mr. Chirag Bhavsar, Adocate with Mr. Nishit Dhruva and
Ms. Eram Quraishi, Advocaes i/b MDP & Partner for the
Applicant/(Orig. Respondent).
Mr. Prakash Shah, Advocate with Mr. Chinmay Paradkar,
Advocate i/b Prakash Shah & Associates for the Respondent
(Orig. Appellants).
CORAM: Justice Tarun Agarwala, Presiding Officer
Dr. C.K.G. Nair, Member
Justice M. T. Joshi, Judicial Member
Per: Justice Tarun Agarwala
1.

We have heard the learned counsel for the parties. The
present appeals were filed against the order dated March 27,
2018 passed by the Whole Time Member (“WTM” for
convenience) of Securities and Exchange Board of India
(“SEBI” for convenience) issuing various directions namely, to
wind up the collective investment schemes and refund the
monies and were also restrained from accessing the securities
market, etc. Pursuant to the said orders, the bank accounts and
the demat accounts of the appellants were frozen.

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2.

This matter came up for hearing and final disposal on
November 26, 2019. Since we could not get the assistance of
the learned senior counsel for the respondent, we passed an
interim order dated November 26, 2019 after hearing the parties
directing the respondent to withdraw a sum of ` 20 lakh from
the accounts of the appellants and thereafter defreeze the bank
accounts and the demat accounts of the appellants within a
week.

3.

The respondent being aggrieved by this part of the order
has filed the Review / Modification Application No. 29 of 2019
praying that the directions issued by this Tribunal on November
26, 2019 be remained stayed during the pendency of the appeal.

4.

At the outset, we may point out that during the midst of a
hearing in another matter a mention was made by the learned
senior counsel for the respondent to take up this matter. The
Tribunal agreed to do so and when the appeal was called out we
again found the non-availability of the learned senior counsel
for the respondent. We accordingly, heard the learned counsel
for the parties.
5.

An attempt was made that the balance sheet as on March
31, 2008 indicates that a sum of ` 4,62,08,962/- was received
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from the investors. The respondent thus contended that since
the said amount was received during the period when the
appellants were directors consequently the directions issued by
this Tribunal should remain an abeyance failing which it would
be difficult to recover the amount in the event of the dismissal
of the appeal.
6.

On the other hand, we find from a perusal of the balance
sheet as on March 31, 2010 that the reserve and surplus as per
the profit and loss account was ` 1.38 crores, the investment
made by the company was ` 4.65 crores, the cash at bank was
` 1.95 crores. Thus, at the time when the appellants resigned as
directors, the networth of the company was far more than the
deposits taken from the investors. Consequently, at this stage
we do not find any reason to modify our order dated November
26, 2019.

The Review Application No. 29 of 2019 is
misconceived and is dismissed.
Sd/Justice Tarun Agarwala
Presiding Officer
Sd/Dr. C.K.G. Nair
Member
Sd/Justice M. T. Joshi
Judicial Member
18.12.2019
Prepared & Compared By: PK