The National Company Law Appellate Tribunal (NCLAT) has dismissed a Securities and Exchange Board of India (SEBI) plea against the resolution plan approved by the Guwahati Bench of the National Company Law Tribunal (NCLT) for the Assam Company (India) Ltd.
Last year, the NCLT had approved a resolution plan filed by BRS Ventures Investment Ltd. for the revival of Assam Company. As part of the plan, the firm announced delisting its equity shares. Against this, the SEBI moved NCLAT and stated that on the allegation that Assam Company and others were a shell company, an investigation was on and it passed an interim order in December 2017 directing the appointment of an independent forensic auditor to verify financial irregularities.
The firm had challenged the probe before the Gauhati High Court, which had set aside the investigation in March, 2019. SEBI had preferred an appeal before the division bench of the high court; however, no order of stay had been passed in the said case, it added. The NCLAT said the appeal by the regulator was not maintainable in the absence of any violation of the provisions of the code or any existing law or material irregularity. However, the NCLAT said the order passed by the Adjudicating Authority or this Appellate Tribunal will not come in the way of the securities regulator or any competent authority taking steps against erstwhile promoters, directors or officers or others, if any or all of them had violated any of the provisions under the SEBI Act or rule framed there under or any other law as may be taken against such person of listed company.
