Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Securities Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations 1997 - s.27 - Hostile takeover of shares - Public Offer - Withdrawal |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Securities Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 - s.27 - Hostile takeover of shares - Public Offer - Withdrawal of - On the ground that due to delay on the part of SEBI in taking decision on the draft C letter of offer (DLO), the target company siphoned off its coffers, depleted its valuable fixed assets and eroded its net worth substantially and thereby the very object of the offer got defeated - SEBI rejected the application for withdrawal - Securities Appellate Tribunal upheld the order of SEBI - On appeal, held: There was D undue delay on the part of SEBI in dealing with DLO - But the delay by itself is not enough to justify withdrawal of the offer unless the case falls under regn.27 - The present case, does not fall under regn. 27 - Under the scheme of the Regulations there is no bar on the target company to take decision about its assets, if the statutory procedure has been complied with and if the decision is otherwise E valid - Thus there is no justification for automatic withdrawal from public offer without clearprejudice to the acquirer to the extent of rendering the carrying out of public offer impossible - In the facts of the present case, the request for withdrawal from public offer was not justified. |
Judge | Hon'ble Mr. Justice Adarsh Kumar Goel |
Neutral Citation | 2016 INSC 1003 |
Petitioner | Pramod Jain And Others |
Respondent | Securities And Exchange Board Of India |
SCR | [2016] 9 S.C.R. 178 |
Judgement Date | 2016-11-07 |
Case Number | 9103 |
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