Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Securities and Exchange Board of India Writ petition |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Securities and Exchange Board of India Act, 1992. ss. 11 AA - Constitutional validity of - Held: The provision is constitutionally valid - It does not intrude into the specific activities of sale of agricultural land and development - The provision cannot be struck down on the ground of legislative competence, being in conflict with Entry 18 of List II of Seventh Schedule of the Constitution - Constitution of India, 1950 - Schedule VII, List II, Entry 18. s.2(ba) and 11AA(2) - Collective Investment Scheme - Whether covers appellant-Company's business activity of sale and development of agricultural land - Held: The activity of the company is nothing but a scheme/arrangement in the guise of sale and development of agricultural land - The agreement between the investors and the company shows that it was one-sided and arbitrary and there was uncertainty in the transactions to the disadvantage of the investors - Therefore the business activity squarely fell within the definition of Collective Investment Scheme u/s. 2(ba) r/w. s. 11 AA(2) - In view of the fact that the whole attempt of the Company was vexatious, and it perpetuated the present litigation with evil intention, exemplary cost of Rs. 50 lakhs imposed - Appropriate inquiry and investigation directed to be conducted by CBI and Income Tax Department apart from the inquiry by the second respondent.Practice and Procedure - Writ petition - Challenging validity of provision of law - Held: In such cases, it is imperative to examine at the threshold, by applyng the principle of lifting of veil as to whether such challenge is bona fide or there is any hidden agenda in perpetrating such litigation - Writ court should also keep in mind certain criteria for the purpose of entertaining such challenge and also while granting interim relief in such cases. Words and Phrases - 'Collective Investment Scheme' - Meaning of, in the context of s. 11 AA of Securities and Exchange Board of India Act. |
Judge | Hon'ble Mr. Justice Fakkir Mohamed Ibrahim Kalifulla |
Neutral Citation | 2013 INSC 155 |
Petitioner | M/s. P.g.f. Limited & Ors. |
Respondent | Union Of India & Another |
SCR | [2013] 6 S.C.R. 32 |
Judgement Date | 2013-03-12 |
Case Number | 6572 |
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