COMMITTEE CONSTITUTED UNDER BOMBAY HIGH COURT ORDER DATED 28° SEPTEMBER 2014 IN SUIT NO.1.73 OF 2014 AND OTHER RELATED SUITS Mr. V.C. Daga Mr. J. S. Solomon Mr. Y. A. Thar Former Judge, Bombay High Court Advocate & Solicitor Chartered Accountant Chairman Member Member Ref. No, Ut /2015-16 ik Naik & Co, INTHE HIGH COURT OF JUDICATURE AT BOMBAY osteo = ORDINARY ORIGINAL CIVIL JURISDICTION “ REPORT NO.14 OF 2015 IN SUIT NO.173 OF 2014 WITH TPNo 2 OF 2014 T0 TPNo 15 OF 2014 WITH OTHER RELATED SUITS Modern India Limited &Ors. Plaintiffs / Applicants Vs. Financial Technologies (1) Ltd. &0rs. Defendants To, The Registrar (Original Side), The Prothonotary and Senior Master, High Court, Bombay. Sir, BE PLEASED to take on file accompanying Report No. 14 of 2015 dated 7% September, 2015 of the committee and place the same on board before His Hon'ble Lordship Shri. Justice S. J. Kathawala for directions at an early date. Dated this 7% day of September, 2015. Yours faithfully, oti (ae Secretary (Legal) For and on behalf of the Committee 1. M/s. Naik Naik & Company Advocates for National Spot Exchange Ltd. 116-B, Mittal Towers, Nariman Point, Mumbai 400021. be M/s. Federal & Rashmikant Advocates for Modern India Ltd. Address: 1* Floor, Committee Room (Aster), World Trade Centre-1, Cuff Parade, Mumbai - 400008.10. i. 101-104 Seksaria Chambers, 1* Floor 139, Nagindas Master Road, Fort, Mumbai 400023. M/s. Cyril Amarchand Mangaldas & Co, Advocates for Financial Technologies (I) Ltd. 34 Floor, Lentin Chambers, Dalal Street, Fort, Mumbai - 400001. The Law Point Advocates for MMTC Ltd, and PEC Ltd, 703 & 704, Tulsiani Chambers, Free Press Journal Marg, Nariman Point, Mumbai 400021. M/s. Mansukhlal Hiralal & Co. Advocates for L. J. Tanna Shares & Securities Pvt.Ltd. Surya Mahal, 2° Floor, S, Burjorji Bharucha Marg, Mumbai 400023. Mr. Sanjay Kadam Investigating Officer EOW, Unit No V, Mumbai Police, Crime Branch, CID, 1st Floor, STF Bldg, ‘Azad Maidan Police Station Compound, Mumbai 400 001 Mr. Ajit Sakhare, (Competent Authority under the MPID Act)Deputy Collector, 1st Floor, Old Custom House, Fort, Mumbai - 400 001. M/s. Markand Gandhi & Co,, ‘Advocates for NSEL Investors’ Action Group 24 Floor, ‘Bhagyodaya’, 79, Nagindas Master Road (Meadows Street), Fort, Mumbai 400023. M/s. Deven Dwarkadas & Partners | Advocates for NSEL Aggrieved and Recovery Association, 1* Floor, Olympus House, 25, Raghunath Dadaji Street, Fort, Mumbai 400 001 NSEL Investors Forum | A-25, MIDC Industrial Area Road No.3, Opposite ESIC Hospital, Andheri (East), Mumbai 400093. Mr. Mehul Shah Advocate Defendant Nos.29 to 32, 34 and 35 in Suit No.173 of 2014. 131, 24 Floor, Great Western Building, Maharashtra Chamber of Commerce Lane, Fort, Mumbai - 400023. Govinf B. Solanke Advocate for LOIL 10, Sai Sadan, 4* Floor, 68, Janmabhoomi Marg, Near Fora Fountain Opposite Siddharth College Fort, Mumbai 400-001IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION REPORT NO.14 OF 2015 IN NOTICE OF MOTION NO.240 OF 2014 SUIT NO.173 OF 2014 ‘TP No 2 OF 2014 TO TP No 15 OF 2014 Modern India Limited & Ors. -. Plaintiffs vs. Financial Technologies (1) Lid, & Ors... Defendants AND OTHER RELATED MATTERS INDEX Sr. | Date Particulars Page No, No. 1_[0+.09.2015 [Report 1:12 2 | 74.08.2013 | Exchibit“A” B copy of an e-mail from LOIL Continental ‘oods Ltd. to NSEL. 3 | 03.12.2014 | Exhibit”B” 14 copy of the letter addressed by LOIL verseas Food Ltd,, LOIL Health Foods Ltd. | ' \d LOTL Continental Foods Ltd. 4 [08.12.2014 | Exhibit “C” copy of statement filed by NSEL. & 5 | 03.12.2014 | Exhibit“D” 16-18 A Copy of Order Sheet No.11B. 6 | 22.12.2014 | Exhibit"E” 19-20 A copy of the letter addressed by LOIL Overseas Food Ltd., LOIL Health Foods Ltd. and LOTL Continental Foods Ltd. 7 [22.10.2014 | Exhibit “F” A.copy of Order Sheet No.14F. a 8 | 22012015 | ExhibirS" MS ‘A copy of the letter addressed by LOIL Overseas Food Ltd., LOIL Health Foods Ltd., LOIL Continental Foods Ltd. 9 | 22.01.2015 | Exhibit “H” 26-27 A copy of Order Sheet No.17B. 10" | 27.05.2015 | Exhibit “1” B29 A copy of Order Sheet No.24B. 11 | 04.04.2015 | Exhibit “” 30-37, Copies of Notice issued by the Legal Secretary Committee to LOIL Overseas Foods Ltd, LOIL Health Foods Ltd. and LOIL Continental Foods Ltd. 12 [13.04.2015 | Exhibit"K™ 38-39 Acopy of letter addressed by LOIL OverseasFoods Ltd., LOIL Health Foods Ltd. and LOIL Continental Foods Ltd. 13 13.04.2015, Exhibit “1” A copy of Order Sheet No.26A. 14 28.04.2015 Exhibit “M* ‘A copy of Order Sheet No.2BA. 15 17.06.2015 Behibit “N° ‘Acopy of Order passed by the High Court 16 10.08.2015 Exhibit “O" A copy of letter addressed by the committee to LOIL Overseas Foods Ltd,, LOIL Health Foods Ltd. and LOI Continental Foods Ltd. 24.08.2015 Exhibit “P Acopy of letter addressed by LOTL Overseas Foods Ltd., LOIL Health Foods Ltd. and LOIL Continental Foods Ltd. 18 24.08.2015 Exhibit “0” ‘A copy of the Order Sheet No.36A.IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION REPORT NO, 14 OF 2015 IN NOTICE OF MOTION NO.240 OF 2014 IN SUIT NO.173 OF 2014 WITH TP No2OF 2014 TO TP No 15 OF 2014 Modern India Limited & Ors. «Plaintiffs / Applicants v/s. Financial Technologies (1) Ltd. & Ors, ...Defendants WITH NOTICE OF MOTION (L) NO.2052 OF 2013 IN SUIT NO.221 OF 2014 MMTC Ltd. Plaintiff ' v/s. ‘The National Spot Exchange Ltd. & Ors. ...Defendants WITH NOTICE OF MOTION (L) NO.2166 OF 2013 IN SUIT (L) NO.991 OF 2013, PEC Ltd. ..-Plaintiff v/s ‘The National Spot Exchange Ltd. & Ors. ... Defendants WITH NOTICE OF MOTION NO.212 OF 2014 IN SUIT NO.121 OF 2014 L. J. Tanna Shares and Securities Pvt. Ltd. & Ors. ...Plaintiff v/s. Financial Technologies (India) Ltd. & Ors. _.. Defendants WITH NOTICE OF MOTION NO.765 OF 2014 IN SUIT (L) NO.328 OF 2014 WITH NOTICE OF MOTION (L) NO.807 OF 2014 The National Spot Exchange Ltd. .-Plaintiff v/s. P. D. Agro Processors Pvt. Ltd. & Ors. -»DefendantsSUBMITTED TO THE HON'BLE COURT: THE COMMITTEE CONSTITUTED UNDER ORDER DATED 2© SEPTEMBER 2014 RESPECTFULLY SUBMIT THEIR REPORT AS UNDER: 4, Under Order dated 2»! September, 2014 passed by this Hon’ble Court in terms of Minutes of Order “X" and “X-1” thereto, a committee consisting of (i) Mr. Justice V. C. Daga (Retd.) - Chairman, (ii) Mr. J.S. Solomon - Advocate and (iii) Mr. Yogesh Thar - Chartered ‘Accountant - Partner of -M/s. Bansi S. Mehta & Co., Chartered ‘Accountants, has been constituted to determine the amounts payable by the alleged defaulters / third parties to National Spot Exchange Ltd. ("SEL") and to ascertain assets of the alleged defaulters / third, parties and amounts received directly or indirectly from NSEL in respect of various trades and to explore and negotiate mutual settlements between NSEL and the alleged defaulters / third parties and their clients and seek appropriate directions from the Court for sale / monetization of the assets both immovable and/or movable of alleged defaulting members and their clients and any other persons and perform duties and functions as provided in the Order dated 24 September, 2014. The Order dated 24 September, 2014 provides that the Committee shall meet from time to time and make periodical reports to this Hon’ble Court so as to appraise the Court of the progress of the work carried out by the Committee in terms of the Minutes of Order. 3, NSEL ~Deferdant No. 2 in Suit No. 178 of 2014 - has taken out Third Party Notice No, 6 of 2014 (Third Party (Lodg,) No. 1 of 2014) dated 3x4 May 2014 against LOIL Overseas Foods Lid. (being a trading inember of NSEL) and against Punjab Greenfield Resources Ltd, {ocing clients of LOTL Overseas Foods Lt.) claiming an amount of Fs '98,11,00,000/- (Bighty Five Crores and Eleven Lakhs only) along with interest from the date of filing of Suit No. 173 of 2014 till payment / realization...NSEL - Defendant No. 2 in Suit No. 173 of 2014 - has taken out Third Party Notice No. 14 of 2014 (Third Party (Lodg,) No. 15 of 2014) dated 31 May 2014 against LOIL Health Foods Ltd., (being a trading member of NSEL) and against LOIL Continental Foods Ltd., (in their capacity as clients of LOIL Health Foods Ltd.) claiming an amount of Rs. 294,48,00,000/-(Rupees Two Hundred and Ninety Four Crores And Forty Eight Lakhs Only) along with interest from the date of filing of Suit No. 173 of 2014 till payment / realization. { NSEL - Defendant No. 2 in Suit No. 173 of 2014 - has taken out Third Party Notice No. 13 of 2014 (Third Party (Lodg,) No.8 of 2014) dated 3x1 May 2014 against LOIL Continental Foods Ltd., (being a trading member of NSEL) and against LOIL, Health Foods Ltd., (in their capacity as clients of LOIL Continental Foods Ltd.) claiming an amount of Rs. 347,71,18,53910/-(Rupees Three Hundred and Forty seven Crores Seventy One lakh Eighteen Thousand Five Hundred ‘Thirty Nine and Ten Paisa only) along with interest from the date of filing of Suit No. 173 of 2014 till payment / realization. In the Third Party Notices mentioned in paras 2, 3 and 4 above, it is stated that defaulting members of NSEL and their clients have received monies from various investing members who have traded on the NSEL platform and the defaulting members and their clients are required to make good the claim of the Plaintiffs in Suit No. 173 of 2014, At the meeting of the Committee held on 20% October 2014, NSEL filed Application No. 2 of 2014 to take on record a list of defaulter members who have admitted their liability and to issue notices to defaulter members and their clients. This Application was considered at the meeting held on 20 October 2014 and notices were directed to be issued by the Committee to the defaulting members and their clients, Hereto annexed and marked Exhibit “A” is a copy of Exhibit “H" to Application No. 2 of 2014 filed by NSEL with the Committee, namely copy of email dated 14" August, 2013 from LOIL Overseas Foods Ltd., /LOIL Health Foods Ltd.,/ LOIL Continental Foods Ltd., to NSEL, in which it is stated LOIL Overseas Foods Ltd., /LOIL 381 82 Health Foods Ltd.,/ LOIL Continental Foods Ltd., have already remitted Rs.143.80 crores to NSEL, which corresponds to approximately 25% of their total exposure. Notice dated 224 October 2014 were issued by the Committee, inter alia, to; (1) LOIL Overseas Foods Ltd., (2) LOI Health Foods Ltd. (3) LOIL Continental Foods Ltd. calling upon them to appear before the Committee on 3* December, 2014. Meeting held on 3 December, 2014 At the meeting held before the Committee on 3"! December, 2014: Advocate for LOIL Overseas Food Ltd., LOIL Health Foods Ltd., LOIL Continental Foods Lid., (“LOIL”) appeared and submitted letter dated 31 December 2014, a copy whereof is hereto annexed and marked Exhibit “B” in which it is stated that LOIL are in the process of assailing the order dated 24 September, 2014 in Appeal inter alia on the grounds of jurisdiction and they do not intend to submit to the jurisdiction of the Committee. In the said letter dated 3! December, 2014 it is also mentioned that LOIL have approached the competent court in Fategarh Sahib, Punjab by way of civil suits and the Hon'ble Court has directed that no coercive steps in any manner can be taken against LOIL. ‘The Committee noted that under the Order dated 24 September, 2014 passed by this Hon'ble Court while constituting this Committee, a specific direction has been issued to the Committee not to take any coercive steps and therefore apprehension of LOIL of any coercive step by the Committee is without any foundation.83 84 94 “5 Advocates for NSEL submitted a compilation showing the amounts claimed by NSEL from LOIL Overseas Foods Ltd., LOIL Health Foods Ltd., LOIL Continental Foods Ltd., to NSEL as under:- Sr. No. LOIL Health | LOIL LOIL Overseas Foods Ltd. Continental Foods Ltd. Foods Ltd. Amount Due | Rs. 294.48 Rs, 356.21 Crores | Rs. 86.19 Crores Crores, Amount Paid [Rs.7 Crores [Rs.8.5 Crores | Rs. 1.08 Crores till 286 November 2014 Balance Rs, 287.48 Rs. 347.71 Crores | Rs. 85.11 Amount Crores, Crores, Hereto annexed and marked Exhibit “C” is a copy of statement filed. on behalf of NSEL with the Committee on 34 December, 2014 (without Annexures). The Committee directed LOIL to respond to the compilation of documents submitted by NSEL before the Committee, a copy whereof had been furnished to Advocate for LOIL and the Committee directed the Advocate for LOIL to produce Ledger Accounts of NSEL maintained by them in the Books of Account of all their establishments and to file affidavit disclosing therein all the assets held by Company, proprietorship and/or partnership concerns as well as personal assets of the proprietor, partners and Directors of LOIL group companies and directed Directors of LOIL group companies to appear before the Committee with their Advocate on 22-4 December, 2014. Hereto annexed and marked Exhibit “D” is a copy of Order Sheet No.11B dated 3 December, 2014 of the Committee, a copy whereof has been forwarded to the Advocate for LOIL group companies. Meeting held on 22% December, 2014 At the meeting held before the Committee on 224 December, 2014: Advocate for LOIL group companies appeared and submitted letter dated 22¢ December, 2014, a copy whereof is hereto annexed and marked Exhibit “E” in which it is stated that LOIL group companies s92 10. 10.1 10.2 have preferred an Appeal against Order dated 24 September, 2014 passed by the Hon'ble Bombay High Court constituting this Committee and that due to pendency of the said Appeal, it will not be possible for LOIL group companies to submit to the jurisdiction of the Committee and it was submitted that the proceedings before the Comumittee relating to LOIL group companies be deferred till such time the Appeal filed by the LOIL group companies is heard by the Hon'ble High Court. The proceedings before the Committee were adjourned to 224 January, 2015 to await result of the subject Appeal. Hereto annexed and marked Exhibit “F" is a copy of Order Sheet No.14F dated 224 December, 2014 of the Committee, a copy whereof has been forwarded to the Advocate for LOIL group companies. Meeting held on 22"¢ January, 2015 At the meeting held before the Committee on 224 January, 2015: Clerk of Advocate for LOIL group companies submitted a letter dated 22m January, 2015 addressed by the Advocate for LOIL group companies to the Committee, a copy whereof is hereto annexed and marked Exhibit “G”, in which it is stated that Appeal filed by the LOIL group companies against the Order dated 24 September, 2014 was pending and that the proceedings before the Committee be further deferred to await the outcome of the said Appeal. The proceedings before the Committee were adjourned. Hereto annexed and marked Exhibit “H” is a copy of Order Sheet No.17B dated 224 January, 2015 of the Committee. A copy whereof has been forwarded to the Advocate for LOIL group companies. In the Order Sheet No.17B dated 22-4 January, 2015 the date to which proceeding relating to LOIL group companies were adjourned has been wrongly mentioned as 18% February, 2015 at 2.00 p.m, instead of 19 March, 2015. The hearing fixed on 19 March, 2015 was postpone to 27% March, 2015.1. na 12 12. Meeting held on 18 February, 2015 At the meeting held before the Committee on 18% February, 2015: In view of pendency of Appeals filed by PDR Agro Processors Pvt. Ltd., N. K. Proteins Ltd, and other parties including LOIL group companies in respect of the Order dated 2“ September, 2014 constituting the Committee. The proceedings before the Committee were adjourned to 14 March, 2015. Meeting held on 27%" March, 2015 At the meeting held before the Committee on 27 March, 2015: 1 122° 13. 131 None appeared on behalf of LOIL group companies and the matter ‘was adjourned to 134 April, 2015. Hereto annexed and marked Exhibit “I” is a copy of Order Sheet No.24B dated 27% March, 2015 of the Committee, a copy whereof has been forwarded to the Advocate for LOIL group companies, Hereto annexed and marked Exhibit “I” is a copy of Notice dated 4% April, 2015 issued on behalf of the Committee to LOIL Overseas Foods Ltd,, LOIL Health Foods Ltd., LOIL Continental Foods Ltd,, calling upon them appear before the Committee on 13 April, 2015 at 2.00 p.m. Meeting held on 13! April, 2015 ‘At the meeting held before the Committee on 13% April, 2015: Advocate for LOIL group companies submitted a letter dated 13% April, 2015 to the Committee, a copy whereof is hereto annexed and marked Exhibit “K” in which it is stated that Appeal filed by the LOIL group companies was pending before this Hon’ble Court and in view of pendency of the said Appeal, proceedings before the Committee relating to LOIL group companies should be postponed. 713.2 133 14. 41 142 15. ‘The Committee adjourned the proceedings to 20% April, 2015 with directions to LOIL Overseas Foods Ltd., LOIL Health Foods Ltd., LOIL Continental Foods Ltd., that if for any reason their Appeal is not taken up for admission or they are not able to obtain stay to the order constituting the present Committee, then in that event, LOIL shall produce their Books of Account on 20% April 2015, without prejudice to their rights in the Appeal. Hereto annexed and marked Exhibit “L” is a copy of Order Sheet No.26A dated 13 April, 2015 of the Committee. A copy whereof has been forwarded to the Advocate for LOIL group companies. Meeting held on 26 April, 2015 At the meeting held before the Committee on 28 April, 2015: The Committee noted that, inter alia, Appeal filed by LOIL group companies in respect of the Order dated 2” September, 2014 constituting the Committee was pending and therefore adjourned proceedings relating, inter alia, to LOIL group companies sine die. Hereto annexed and marked Exhibit “M” is a copy of Order Sheet No.28A dated 28% April, 2015 of the Committee, a copy whereof has been forwarded to the Advocate for LOIL group companies. M/s. N. K. Proteins Ltd. have filed Appeal (L) No.741 of 2014 and M/s. White Water Foods Pvt. Ltd. and others have filed Appeal (L) No.766 of 2014 and Appeal (L) No.767 of 2014 challenging the Order dated 24 September 2014 passed by the Learned Single Judge under which the Committee has been constituted. By Order dated 17 June 2015 passed by the Division Bench of this Hon'ble Court, a copy whereof is hereto annexed and marked Exhibit “N”, the said three Appeals have been admitted and Interim Order directing that the Order of the Learned Single Judge passed on 24 September 2014 shall not be operative against the Appellant - M/s. N. K. Proteins Ltd. and that the Order dated 24 September 2014 passed by the Learned Single 816. v7. 18. Judge shall be operative against the Appellants in two Appeals i.e. Appeal (L) No.766 of 2014 and Appeal (L) No.767 of 2014, namely M/s. White Water Foods Pvt. Ltd. and (1) M/s. V.LR. Foods Ltd., (2) M/s. Tradebiz Commodities, and (3) M/s. Bharat Food and Agro Products on condition that the Commission shall function in accordance with Section 75 of the Code of Civil Procedure while discharging its functions under the Minutes of Order and the directions issued by the Learned Single Judge and that the Committee shall not have any adjudicatory powers, has been passed. The Committee is proceeding on the basis that the Order dated 17% June 2015 passed by the Division Bench of this Hon'ble Court is applicable in the case of Appellants in the three Appeals in which the said Order has been passed and that in case of other parties, including LOIL Overseas Foods Ltd., LOIL Health Foods Ltd., LOTL Continental Foods Ltd., and their clients, subject to orders and directions which may be passed by the Hon’ble Court, the Committee is required to continue to perform functions as provided in the Order dated 24 September 2014 passed by the Learned Single Judge, which includes power to determine on facts found and recommend without any judicial determination. As the Committee was not informed of any Order passed in Appeal No.806 of 2014 filed by LOTL Overseas Foods Ltd,, LOIL Health Foods Ltd. LOIL Continental Foods Ltd., Secretary (Legal) of the Committee by letter dated 10% August, 2015 addressed to them calling upon them to appear before the Committee on 24% August, 2015 at 2.00 p.m. and to comply with the directions issued by the Committee under Order Sheet No.11B dated 3 December, 2014 and Order Sheet No.26A dated 13 April, 2015. Hereto annexed and marked Exhibit “O, is a copy of the said letter dated 10% August, 2015, a copy whereof has been forwarded to the Advocate for LOIL group companies as well. Meeting held on 24% August, 2015 At the meeting held before the Committee on 24" August, 2015:10 18.1 182 18.3 184 Advocate for LOIL group companies appeared and submitted letter dated 24% August, 2015 addressed to the Committee, a copy whereof is hereto annexed and marked Exhibit “P” in which it is stated that no amount is due or payable to NSEL by LOIL group companies and LOIL group companies have filed various Suits against NSEL and its agents in the Court of the Civil Judge (Senior Division), Fatehgarh Sahib, Punjab in which by Order dated 4% January, 2014 ad-interim relief has been granted to the companies of LOIL group and that Suit 'No.173 of 2014 was filed by Modern India Private Limited against NSEL and others in this Hon’ble Court, wherein NESL issued Third Party Notices to LOIL Overseas Foods Ltd., LOIL Health Foods Ltd., LOIL Continental Foods Ltd. is subsequent to civil proceedings initiated by them. It was stated that in the said letter dated 24% August, 2015 that the Appeal filed by LOIL group companies against the Order dated 24 September, 2014 is likely to be taken up and till the adjudication of Appeal as well as the Suits filed by LOIL group companies, proceedings before the Committee qua LOIL group companies may be kept in abeyance. Advocate for LOIL group companies applied for further adjournment of proceedings before the Committee pending adjudication of the Appeal filed by LOIL group companies in respect of the Order dated 2 September, 2014. The request on behalf of Advocate for LOIL group companies for adjournment of proceedings before the Committee pending hearing of Appeal filed by LOIL group companies in respect of Order dated 24 September, 2014 was rejected and the Committee noted that it is necessary for the Committee to request the Hon'ble High Court to issue directions to LOIL group companies to appear before the Comunfttee and comply with the directions issued by the Committee and produce accounts and documents as may be required by the Committee. Hereto annexed and marked Exhibit “OQ” is a copy of Order Sheet No36A dated 24% August, 2015 of the Committee, a copy whereof has been forwarded to the Advocate for LOIL group companies. 1019. 2 @ @ @) @) ©) (6) In the circumstances, it is respectfully submitted that for purpose of carrying out the functions of the Committee under the Order dated 24 September 2014 and determining the amount payable by LOIL Overseas Foods Ltd, LOIL Health Foods Ltd, LOIL Continental Foods Ltd, to NSEL and by Punjab Greenfield Resources Ltd. to LOIL Overseas Foods Ltd., and by LOIL Continental Foods Ltd., to LOIL Health Foods Ltd., and by LOIL Health Foods Ltd., to LOIL Continental Foods Ltd., notices may be issued by the Hon’ble Court to LOIL Overseas Foods Ltd., LOIL Health Foods Ltd., LOIL Continental Foods Ltd, and Punjab Greenfield Resources Ltd., directing them to appear before the Committee in person or through their Advocate or Authorised Representative on 29 September 2015 at 02:00 p.m., and subsequent dates as may be fixed by the Committee and to produce documents as may be required by the Committee. Further recommendations of the Committee relating to LOIL group companies and its clients will be submitted for the consideration of the Hon'ble High Court in due course. Copies of this Report are being served on following persons:- M/s. Naik Naik & Co. ‘Advocates for National Spot Exchange Ltd. M/s. Federal & Rashmikant — Advocates for Modern India Ltd, M/s. Cyril Amarchand Advocates for Financial Technologies Mangaldas & Co. Advocates (India) Ltd. The Law Point Advocates for MMTC Ltd. M/s. Mansukhlal Hiralal & Advocates for L. J. Tanna Shares and Co. Securities Pvt. Ltd. Mr. Sanjay Kadam OW Mr. Ajit Sakhre Competent Authority(8) M/s. Markand Gandhi & Co. Advocates for NSEL Investors’ Action Group (9) M/s. Deven Dwarkadas & Advocates for NSEL Aggrieved and Partners Recovery Association (10) Mr. Sandeep Karnik Advocate for NSEL Investors Forum (11) Mr. Mehul Shah Advocate for Defendant Nos.29 to 32, 34 and 35 in Suit No.173 of 2014 (12) Mr. Govind B. Salunke Advocate for M/s. LOIL Continental Foods Ltd., M/s. LOIL Overseas Foods Ltd., M/s. LOIL Health Foods Ltd., Dated this J” day of September, 2015 Sale ustice V. C. Daga (Retd.) Chairman Sle (.S. Solomon) Advocate and Solicitor Member Gale (Yogesh Thar) Chartered Accountant MemberExam. *" from: wil CONTINENTAL altsaeontieatutamal am) Sent: Wednesday, August 14, 2013 20:21 AM . “Yor ait HeNa/NSEL/Business Development; AnjanlSlaha/NSEL/CEO; Amt Muknerjeems Devepment : Schedules Payn = by 12 aoan bath August 2003 Subj Deut Sir Please nore that we have already remitted Rs,143.80 Crores in LOL ‘Overseas/LOTL Continental/LOIL Health Poods Ltd. during the last around 25, days, which corresponds to: approximately 25% of our total exposure. So against " your settlement schedule of 5% with FMC/Investors/Brokers, we have already paid 2st of exposure in last few days. Further, pursuant to thé'meeting with Mr. Anjani Sinha, we are acranging for the additional 5% payment aad will shortly make the remittance of this amount, “Chanks ! i LOU CONTINENTAL FOODS LTD/LOIL OVERSRAS FOODS.LTD/LOIL, HEALTH FOODS LTD.GOVIND B SOLANKE BLS LL.B ADVOCATE, HIGH COURT, BOMBAY ‘OFFICE: 10, Sai Sadan, 4” floor, 68, Janmabhooml Marg, Near Flora Fountain, Opp. Siddharth College of| ‘Commerce, Fort, Mumbai- 400 001. TEL: Mob: 8976171169 , Off 22- 22003595 By Hand & Speed Post AD December 3, 2014 To, , Mr. ¥C Parikh Secretary (Legal) Committee Constituted under Bombay High Court Order dated 2% September 2014 in Suit No. 173 of 2014 and Other Related Suits Room No. 15, 1** Floor, World Trade Centre Centre ~ 1, Cuffe Parade, Mumbai - 400 005 sir, Sub : Your Notice dated 22.10.2014 addressed to my client, LOIL Health Foods Limited to appear before the Committee on 03.12.2014 | act for my client, LOIL-Health Foods Limited, who has instructed me to write to you as under. My client is in receipt of your subject notice calling upon it to appear before the Commitiee on 03.12.2014. Noticeably, this Committee has been constituted vide order dated 02.09.2014 passed by the Hon'ble Bombay High Court in Suit No. 173 of 2014 and other related Suits and it is in terms of the powers vested by this order that the Committee has called my client to appeat on 03.12.2014. Please note that my client is in the process of assailing the order dated 02.09.2014 it Appeal inter-alia on the grounds of jurisdiction. In view of the same, my client respecttully states that it intends not to submit to the jurisdiction of this Committee as it may bi detrimental to its rights and interest and it will, therefore, not be possible for my client tc participate in the proceedings fixed on 03.12.2014. In any case, please note that my client has already approached the competent court {r Fatehgarh Sahib, Punjab by way of civit suits and the Hon'ble Court has directed that nc coercive steps in any manner can be taken against my client. The same lias also been notec in the order dated 02.09.2014 passed by the Hon'ble High Court in which it has been heh. that this Committee does not have the power to take any coercive steps against any party. ‘This is without preju to my client's rights and contentions in Suit No, 173 of 2014 anc the Appeal being preferred by it as well as any other legal remedies which my client may opt in due course of time, ‘Thanking you, Yours sincerely Govind Solanke AdvocateSaar ~"c “ci teetierey OIL Group 1) LOIL Group includes LOIL Health Foods Limited, LOIL Continental Foods Limited and LOIL Overseas Foods Limited. 2) Total amount due — Rs 736.89 crores: [Page 1] ‘Sr No LOIL Health LOI Continental [LOIL Overseas | Amount Due Rs.294.48 Rs, 356.21 crores ___| Rs. 86.19 crores ‘Amount Paid till 28"|Rs.7 Crores | Rs. 8.5 crores Rs, 1.08 crores November 2014 Balance Amount. Ts, 287.48 Crores | Rs. 347.71 crores | Rs. 85.11 crores | 3) Comimodity Trades: Paddy 4) List of Clients: : LOML Health (Trading cum clearing member) Client LOIL Continental LOL Continental (Trading cum clearing member) Client LOIL Health LOIL Overseas (Trading cum clearing merober) Clients a 1) LOIL Continental 2) LOIL Health : 3) Punjab Greenfield Recourses Limited- setiled position Mr. Balbeer Singh Uppal, Gurdeep Singh and Sanjeey Sood ~ Director in LOIL overseas Mr. Balbeer Singh Uppal, Gurdeep Singh and Roshanlal Sood — Director in LOIL Health Mr. Balbeer Singh Uppal, Gurdeep Singh and Ashok Kumar Chopra - Director in LOIL Continental 5) Admission of liability by 14" August 2013 email does not include amount {Page 2) 6) MPID Proceedings: 8) MANo 161 of 2014 filed by NSEL for defreezing of 7 accounts of LOIL group (details mentioned below) freezed by EOW and to transfer the amount to NSEL escrow account. Amount is Rs. 1 crores 18 lakhs approx. Application is pending. ‘All three LOIL Group have filed their reply stating that various suits have been filed in the courts at fatehgarh sahib and have stayed the operation of attachment by EOW. It is also submitted that MIPD is not applicable and therefore MPID Court dees not have jurisdiction. Matter is Pending. [Page 3-190) 1) LOML has filed 12 Suit in Fatehgarh Sahib (Punjab)16 BEFORE THE COMMITTEE CONSTITUTED UNDER THE BOMBAY HIGH COURT ORDER DATED 2°4 SEPTEMBER 2014 IN SUIT NO. 173 OF 2014 AND OTHER RELATED SUITS COMPRISING OF MR. JUSTICE V.C.DAGA (RETD.) CHIARMAN, MR. J.8.8OLOMAN (ADVOCATE AND SOLICITOR-MEMBER) AND MR. YOGESH THAR (CHARTERED ACCOUNTANT MEMBER) MODERN INDIA LIMITED & ORS --PLAINTIFFS vs. FINANCIAL TECHNOLOGIES (INDIA] LTD. AND OTHERS .-DEFENDANTS. APPEARANCES: Mr. Ameet Naik, i/b Naik, Naik and Co.with Mr. Chirag Kamdar, Ms.Anuja Jhunjhunwala and Mr. P.R.Ramesh, Advocates for NSEL Mr. Sachindra Dube, Mr. Neevai S and Mr.Vishal Pokanhe, NSEL Mr. Akshay Patil, Ms.Pooja Kothari, Mr.H.B.Mohonty and Mr.Ravi Warrier i/b Federal and Rashmikant for plaintiff in Modern suit! Mr.Bhusan Shah with Ms.Namrata Shah,and Ms. Hiral Thakkar i/b Mansukhlal Hiralal and Co. in L.J.Tanna suit, Mr.Ajay Dalamia for NIF Mr. Avinash Avhad, Spl. Public Prosecutor with Mr.Ramchandra Lotliker, P.1., EOW, Crime Branch, Mumbai17 Mr.Ajit Sakhare, Competent Authority under MPID present. Ms.Nidhi for AIRA Mr.Chirag Shah, Mr. Bhavesh Lakhwani, Mr. Sanjay Sanghavi, Mr. Girish Dev Mr. Rajesh S, Kanai for Investor/NASARA Mr. Bhavesh Solanki, Advocate for LOIL Group Mr.Vijendra Misra, Advocate for MSR Food Processing, Mr. Nahar Narayan Singh, representative of M/s Namdhari Foods International Pvt. Ltd. ORDER SHEET NO. 11B (Dated 34 December 2014) 1 Mr. Govind B. Solanki, Advocate appeared on behalf of LOIL Overseas Food Ltd., LOIL Health Foods Limited, LOIL Continental Foods Limited (LOIL for short). He submitted letter dated 3 December, 2014 addressed to the Committee challenging the jurisdiction of this Committee as well as the liability sought to be set up by NSEL. 2. Mr. Solanki alsoinformed that LOIL has already approached the Competent Court in Fatehgarhsahib (Punjab). by way of a Civil Suit and that the Hon’ble Court has directed no coercive steps in any Gera tare eee against the said firms. Needless to mention that while constituting this Committee by the Hon'ble Bombay High Court, a specific direction is issued to this Committee not to take any coercive steps. In this view of the matter apprehension of the noticees that this Committee is going to take any coercive step is without any foundation. However, this Committee is well within its jurisdiction to seek certain clarifications and information from the noticerg LOIL.aes anit. Consequently, the following directions are issued with direction to report compliance thereof by next date of hearing. 3. LOIL shall respond to the compilation of documents submitted by NSEL, copy of which is already furnished to Mr. Solanki, Advocate. 4. LOI shall produce Ledger Account of NSEL maintained by them in the Books of Account of all their establishments. LOIL to file affidavit disclosing therein all the assets held by the Company, proprietorship and/or partnership concerns as well as personal assets of the proprietor, partners and Directors of LOIL group companies. 5. Directors of LOIL group companies are directed to appear with their Advocate before this Committee on 224 December, 2014247 ztoP-™> « JUSTICE V.C.1 Le ey 7 ee YOGESH THAR ADVOCATE & SOLICITOR MEMBER 18«OFFICE, Sal Sadan, &fiaor, 68, lanmauhoamni Marg, Near Flora Fountain, Opp. Siddharth College of 19 GOVINDB. SOLANKE BLS UL. 8. ADVOCATE, HIGH COURT, BOMBAY L ‘Commerce, Fart, Mumbai- 400 001. ‘TeL___:Mob.: 3976171169, Off: 022- 22043595 By Hand & Speed Post AD December 22, 2014 To, Mr. YC Partch Secretary (Legal) ‘Committee Constituted under Bombay High Court Order dated 2m September 2014 in Suit No. 173 of 2014 and Other Related Suits Room No. 15, 18 Floor, World Trade Centre Centre 1, Cuffe Parade, Mumbai - 400 005 “Sir Sub; Order dated 03.12.2014 passed by the Hon'ble Committee Lact for my client, LOIL Overseas Foods Limited, LOI, Health Foods Limited and LOIL Continental Foods Limited, who have instructed me to write to you as under. On 03.12.2014, i had submitted letters to the Hon’ble Committee on behalf of my clients stating that my clients are in the process oF assailing the order dated 02.09.2014in Appeal inter-alia on the grounds of jurisdiction. In the sald letters it was farther submitted that, in view of the.Appeal, my clients intend not to submit to the jurisdiction of this Hon'ble Committee as it may be detrimental to their rights and interest and it will, therefore, not be possible for my clients to participate in the proceedings fixed on 03:12.2014. This Hon'ble Committee was further informed that my clients had already approached the competent court in Fatehgarh Sahib, Punjab by. way of civil sults and the Hon'ble Court had directed . that no coercive steps in any manner can be taken against my clients. The same had also, ? been noted in the order dated 02.09.2014 passed by the Hon'ble High Court in. which it has been held that this Committee doesnot have the power to take any coercive steps against - any party. ‘The proceedings of 03.12.2014 were later put up on the website of NSEL Investors’ Forum wherein in respect of my clients it was clearly stated that the Hon'ble Committee was of the view that since the Hon'ble Courts in Punjab had passed several orders, it will be appropriate for the National Spot Exchange Limited (°NSEL") to. procure a consent from those courts for allowing the Committee ascertain the claim of NSEL and that the counsel for NSEL agreed to this and stated that he will tale necessary steps in this regard. My clients have now received a copy of the order dated 03.12.2014 passed by the Hon'ble Committee, the contents of which are contrary to the record of the proceedings put up of the website of the NSEL Investors Forum. Vide the said order, my clients have been . rected to respond.to 3 compilation of documents which were never furnished to me or my client, My clients have further been directed to furnish v; is documents y which are being relied upon. in the pending judicial proceedings in Punjab and {ts"Directors and officers Yiave been directed ‘to be personally present at the meeting of this Hon'ble Comintttee today, The directions contained in the order are coercive in nature, . - My clients have, therefore, preferred! an appeal against the order dated 02.09.2014 passed . by.the Hon’ble High Court constituting this Hon’ble Committee, The Appeal was mentioned at A pm today before, the Hon'ble High Court and the Hor’ble High Court has directed that the same be listed on 05.01.2015. in the meanwhile, one NK Proteins Limited has already _ fled an appeal against the same order. The Said appeal was mentioned on 20:12.2014 before a Bench of the Hon'ble Chief Justice, Bombay High Court when Their Lordships were pleased to direct that the same be listed on 05.01.2015 and, in the meanwhile, NSEL agreed hot to press the matter before this Hon‘ble Committee. Since my clients have also preferred an appeal against the same arder Which is being listed along with the appeal pf NK Proteins20 : : Limited on 05.01.2015, it is respectfully requested that, in the Interest of justice and propriety, the present proceedings be deferred till such time as the said Appeal is heard by the Hon'ble High Court. +" While my clients have the highest regard for this Hon'ble Committee, due to the pendency A of the aforesaid appeal, it will not be possible for my clients to submit to the jurisdiction of “this Hon'ble Committee. . This'is without prejudice to my clients’ rights and contentions in Suit No. 173 of 2014 and the Appeal preferred by it as well as any other legal remedies which my clients:may opt in due course of time. . : + Thanking you, : Yours sincerely @. Govind Solanke Advocate -ea *F" at BEFORE THE COMMITTEE CONSTITUTED UNDER THE BOMBAY HIGH COURT ORDER DATED 2"4 SEPTEMBER 2014 IN SUIT NO. 173 OF 2014 AND OTHER RELATED SUITS: COMPRISING OF MR. JUSTICE V.C.DAGA {RETD.} [CHAIRMAN], MR. J.S.SOLOMON, ADVOCATE AND SOLICITOR: [MEMBER] AND MR. YOGESH THAR, CHARTERED ACCOUNTANT [MEMBER] MODERN INDIA LIMITED & ORS ~-PLAINTIFFS, Versus FINANCIAL TECHNOLOGIES (INDIA) LTD. AND OTHERS ..DEFENDANTS APPEARANCES: Mr. Ameet Naik, i/b Naik, Nail and Co. with Ms.Anuja Jhunjhunwala, and Mr, P.R.Ramesh Advocates for NSEL Mr.Santosh Dhuri, Mr. Sachindra Dube, Mr, Neeraj Sharma, MrManmohan Anand, Ms.Sucheta Panickar, Mr Ajay Singh, Mr.Vishal Pokarne, R.Majwelkar and Mr. H.,B,Mohanty for NSEL Mr. Akshay. Patil, Mr.Ravi Warrier and Ms. Hiral Thakkar, i/b _ Federal and Rashmikant for plaintiff in Modern suit Mr.Bhusan Shah,Ms.Namrata Shah, and Ms.Meenal Maheshwari i/b Mansukhlal iralal and Co. in L.J.Tanna suit Mr.Ajay Dalmia for NIF Mr. Sanjay Kadam, A.C.P., Mr.Dattatraya V. Patil PSI, EOW, Mumbai Mr.Ajit Salchare, Competent Authority under MPID present| Mr. Chirag Shah for NAARA Mr. Ravi Shankar for MSF Mr. Ravi Kamani investor Mr. Nahar Singh for Namdhari Foods India Pvt.Ltd. M/s Rajesh Brokers for Swastik Overseas Mr, Pravin Gaikwad, Advocate with Ms,Dipika Batheya ‘or 8.R.Todi and others. Mr.Nandish Chudgar i/b Nanavati Associates for N.K.Proteins Mr.Amit R.Jadhav i/b Mr.Sachin Masurkar, Advocate for Swastil Overseas, M/s Raghukul Enterprises,.M/s Horizon Corporation and Mr.Sunil Dichwania Ms. Shreeina Doshi i/b M/s Wadia Gandy and Co. Advocate for Shilpa Jalan (Creditor of Swastik Overseas) Mr. Sunil Ghadage i/b Lalla and Lalla Associates Shirish B. Betgiri ORDER SHEET NO, 14F (Dated 22"4 December 2014) | 1. ’ ‘Mr. Govind, B. Solanke has sent a letter dated 22"4 December, 2014 informing the Committee that LOIL Health Foods | Limited and LOIL Continental Food Limited have filed an appeal challenging the order of learned Single Judge of the Hon’ble High Court dated 24 September, 2014 and that their appeal is likely to be listed on 5.01.2015. 2. It is reported that they are in appeal before the Hon’ble High Court against the order under which this Committee is constituted.23 3. In the above view of the matter the proceedings are adjourned to 224 January, 2015 to await result of the subject appeal. ‘8.0, to 22.1.2015 at 2.30 AM. sd [- STICE V.C.DAGA. td. CHAIRMAN spe sqi- J. 8. SOLOMON OG) VOr SOLICITOR CHARTERED ACCOUNTANT MEMBER MEMBER‘iin *G* GOVIND SOLANKE. ADVOCATE, HIGH COURT, BOMBAY e SHIGE TO, Sai Sadan, ¥* Toor 6, Janmabhoomi Marg, Near Flora Fountain, Opp, Siddharth College ‘of Commerce, Fort, Mumbal- 400 001. . TeL _: Mob,; 8976171169, Off: 022- 22043595 By Hand & Speed Post AD January 22, 2015 To Mr. YC Patikh, Secretary (Leys!) ‘ Committee Constituted under Bombay High “Cou:t Order datéd 2" September 2014 in Suit No. 173 of 2014 and other related suits Room No. 15, 1" Floor, World ‘Trade Centre Centre- 1, Cuffe Parade, Mumbai. 400 005 sir Order dated 22.12.2014 passed by the Hon'ble Committee and notice dated 26.12.2014 for the heating dated 22.01.2015. 1 act for my clients, LOL Overseas loods Limited, LOIL Health Foods Limited; and LOTL Continental Foods Limited, who have instructed me to waite to you as under. ‘You would kindly recall thar vide my letter dated 22.12.2014, | had inforined you that my clients had preferred an appeal against the order dared 02.09.2014 passed by the Hon'ble Bombay High Coust constiruting ‘this Hon'ble Committee and that, upon mentioning, the same was directed ty be listed on 05.01.2015, slong with orher similar appeals. ‘The Hon'ble Committee was, therefore, requested to defer the preseat proceedings rill such time as the said appeal was heard by the Hon'ble High Court. Upon receipt of my aforesaid letter, the Hon'ble Committee vide its order dated 22.12.2014 deferted the present proceedings to 22.01.2015 ‘to await result of the subject appeal”. fe1 } Bench of the Hon'ble Chief justice, Bombay High Court on 06.01. a5 when the Hon'ble Chief Justice was pleased to recuse himself fromthe Tratter and ditect that the seme be listed before some other Bench. ithe appeals ‘have since not been listed and it is ‘expected that the same willbe listed shottly. y ‘The said appeal (along with similar appeals) came up for hearing rah a To view of the above, since the appeals are still pending and there outcofije is still awaited, it is respecttully requested that, as observed in the order dated 22.12.2014 of the Hon'ble Committee, the present proceedings be fadther deferred to await the outcome of the said appeals. t My clients respectfully reiterate that, while they have the highest regard for the Hon'ble Committee, due to the pendency of the aforesaid appeal, if will fot be possible for chem to subinit to the jurisdiction of the Hon'ble ‘Committee. ‘This is without prejudice to my clients’ rights and contentions in Suit No. 173 of 2014 and the appeal preferred by them as well as any other egal remedies which my'clients may opt in dae course of time. : ‘Thanking you Yourg.sincerely BES Govind Solanke Advocate GOVIND F Het Actvos ‘i, capo and AO OUT. Rate sI7G Hs te iEel aay" 7 26 BEFORE THE COMMITTEE CONSTITUTED UNDER THE BOMBAY HIGH COURT ORDER DATED 2=4 SEPTEMBER 2014 IN SUIT NO. 173 OF 2014 AND OTHER RELATED SUITS COMPRISING OF MR. JUSTICE V.C.DAGA (RETD.) CHIARMAN, MR, J.8.SOLOMON {ADVOCATE AND SOLICITOR-MEMBER) AND MR. YOGESH THAR (CHARTERED ACCOUNTANT MEMBER) MODERN INDIA LIMITED & ORS ..PLAINTIFFS. VS. FINANCIAL TECHNOLOGIES (INDIA) LTD. AND OTHERS DEFENDANTS APPEARANCES: Mr. Ameet Naik, i/b Naik, Naik and Co. with Ms. Anuja Jhunjhunwala, Mr. Abhishek Kale, Mr.J.S.Khattav and Ranju Yadav, Advocate for NSEL Mrs, Sucheta Panickerr, Mr.Amol Bavare, Mr, Joseph Massey, Mr.Manmohan Anand, Mr. Vishal Pokarne for NSEL Mr.Ravi Warrier with Ms.Hiral Thakkar, Adv, i/b Federal and Rashmikant for plaintiff in Modern suit. Mr, Bhushan Shah with Ms.Namrata Shah, Advocates i/b Mansuhlal Hiralal and Co. in L.J.Tanna suit. : ; Mr. Sanjay Kadam, A.C.P' with Mr. Dattatraya Patil, PSI., Mr. Bharat Bhoite, Mr. Prasad Satarn, Mr. Ramchandra Lotalikar, PIs, present. Mr.C.A. Athari, Advocate and Mr. Jigan Jani, Advocate i/b M/s Sunil and Co, for Whitewater Foods Pvt.Ltd Ms. Sonali Sable i/b Lala and Lala for Shirish Bedigiri,.27 Ms. Shreema Doshi, Advocate i/s Wadia Gandhy & Co for Alok Jalan and Shilpa Jalan. Mr. Yusuf Iqbal, Advocate with Ms.Shgasyta Pathan and Mr. Abdul RTehman, Advocate for Prime Zone. Mr.Kirit V.Shah, Mr. Dilip Shah, Investors, Mumbai. Ms. Nidhi Shukla with Mr. Parth Sehan for NAARA Mr.Uday Tardalkar for AMMI/BBICCPAL Mr. Navrit Kumar Goel, Advocate for P.D. Agro Processors Mr.Rajesh Mehta, representative of Swastik Trading Co. Mr, Virendra Ichalkaranjikar, Advocate for Namdhari Foods Ltd. ‘ ORDER SHEET NO. 17B (Dated 22=¢ January, 2015 ) 1. Ms. Kirti, Apte, Clerk of the Advocate appearing for LOIL Group has circulated a letter dated 224 January, 2015 mentioning therein that they are still in appeal before the Hon'ble High Court and that their appeal is yet to be listed before the appropriate Bench. It is also mentioned that the appeal could not be listed for the reasons given in the letter. 2. In the ‘above circumstances, the proceedings, are adjourned to 18% February, 2015 at 2.00 p.m. with directions to the parties to appear before the Committee to report progress of the appeal, if any. eB. S.O. to 18.02.2015 at 2.00 p.m. nak 4 SUE oy Roe JUSTICE V.C.DAGA (RETD.) CHIARMAN er Les rm wary “sB.80L0MON © YOGESH THAR {ADVOCATE AND SOLICITOR) CAL MEMBERPEE EE eee eer eer Hee HCH eee eee eee eee Samn-'r' BEFORE THE COMMITTEE CONSTITUTED UNDER THE BOMBAY HIGH COURT ORDER DATED 2™4 SEPTEMBER 2014 IN SUIT NO. 173 OF 2014 AND OTHER RELATED SUITS COMPRISING OF MR. JUSTICE V.C.DAGA (RETD.) CHIARMAN, MR. J.S.SOLOMON (ADVOCATE AND SOLICITOR-MEMBER) AND MR. YOGESH THAR (CHARTERED ACCOUNTANT MODERN INDIA LIMITED & ORS »PLAINTIFFS vs. FINANCIAL TECHNOLOGIES (INDIA) LTD. AND OTHERS .-DEFENDANTS APPEARANCES: Mr. Ameet Naik with Ms. Anuja Jhunjhunwala, Mr. Amey Mirajkar, and Mr. Chirag Kamdar i/b Naik, Naik and Co.for NSEL Mr. Amol Bawne, Ms. Suchitrta Paniker, Mr. Santosh Dhuri, Mr. Manmohan Anand representatives of the NSEL Mr. Awadh K. Bhoyar, Advocate for M/s Horizon Corporation Pvt. Ltd. (Mr. Sunil Didwania) Mr. Durgaprassad Poojari, Advocate for Metkore Alloys and Industries Lt.d Mr. Rabiya Bhamla, Mr Abdul Rehman and Ma. Shaista Pathan, Advocates for Prime Zone Developers. Mr. Akshay Patil, Advocate, Ms, Hiral Thakkar and Mr. Ravi Warrier Advocates i/b Federal and Rashmikant for plaintiff in suit no, 173 of 2014Ms.Nidhi Shukla, Advocate for NAARA Mr. Sanjay L. Kadam, A.C.P., with Mr. D.V.Patil P.S.1. for BOW Mr. Ajit Sakhare, Deputy Collector and Competent Authority. Mr.Bhushan Shah with Ms.Namrata Shah, Advocates i/b Mansukhlal Hiralal and Co. in L.J.Tanna suit. Mr. Padmakar S. Garad for State Bank of Bikaner and Jaipur Mr. Bhusan Shah for Venturea Securities Mr. Bhayesh Joshi representative of Motilal Oswal Commodities Brokers Pvt. Ltd. ORDER SHEET NO. 248 (Dated 27% March, 2015 } L Notice was issued to Mr. Govind Solanki, Advocate, appearing for LOIL Group, today be@fore this Committee. Receipt of the said notice has been acknowledged by him. In spite of this nobody is present on behalf of LOIL Group. 2. On the last date of hearing, the representative of LOIL Group was specifically asked to appear before this Committee and to inform the progress of the appeal. The said direction has not yet complied with. 3. In the above circumstances, we have no option but to grant one more opportunity to LOIL Group represented by Mr. Govind Solanki. Advocate. Fresh notice to be issued to LOIL Group returnable on 13% April, 2015 at 2.00 p.m. 4. Learned Advocate appearing for NSEL tendered accounts of entire LOIL Group. S20. RR ar tee pa, Lae. pions MR. YOGESH THAR ADVOCATE AND SOLICITOR CHARTERED ACCOUNTANT MEMBERSCOMMITTEE CONSTITUTED UNDER BOMBAY HIGH COURT ORDER DATED 2° SEPTEMBER 2014 IN SUIT NO. 173 OF 2014 AND OTHER RELATED SUITS Mr Justice V.C Daga Mr.1. $ Solomon Mr. Yogesh Thar Former Judge - Bombay Advocate & Solicitor Chartered Accountant ‘Chairman ‘Member Member 51, Rajgir Chambers, 6% Fioot, Calcot House, 3° Floor, Merchant Chamber, 3° Floor, 41, ‘Opposite Customs House, 8/30, M. P. Shetty Marg, ‘New Marine Lines, 12/14 Shahid Bhagat Singh Re, (Tamarind Street), ‘Mumbai 400020 Fort, Mumbai ~ 400 001 Fort, Mumbai 400023. ‘Tel?+91-22-22014922 ‘Tel: +91-22-22658622 Fel:#91-22-66273900 Email: yogesh.thar@bsmeo.net Email: vijayedaga@gmail.com | Email: jonsthan.salomon@stmnco.in : aos | Rag No. 6 og ‘© By COURIER/E-MAl Date: 4" April, 2015, To, L LOIL Continental Foods Ltd., SCO 18-19, 1" Floor, Sector 9-D, Madhya Marg, Chandigarh - 160017, 2. LOIL Health Foods Lia, SCO 18-19, 1" Floor, Sector 9-D, ‘Madhya Marg, Chandigarh ~ 160017, Oe LOIL Overseas Foods Lid. 4128, 2" Floor, Naya Bazar, Delhi - 110 006. Re; Notice to appear before the committee on 13" April 2015 at 2:00 p.m, in of amounts due and jo National Spot Exchange Ltd, ONSEL) Dear Sir/Madam, At the meeting held before the committee on 22" January 2015, you were directed to inform the Hon’ble Committee on 19 March 2015 about the progress in the Appeal filed by you. ‘Thereafter, by letter dated 18 March 2015, your Advocates were informed of the adjournment of the meeting on 19" March 2015 to 27" March 2015, However, on 27" March 2015, none appeared ‘on your behalf and the matter is now adjourned to 13" April 2015 at 2:00 p.m.Please find attached herewith a copy of the Order Sheet No, 178 dated 22” January 2015 and Order Sheet No. 24B dated 27" March 2015, ‘You are called Upon to appear before the Hon'ble Committee on 13% April 2015 at 2:00 Pam. at Committee Room, World Trade Center, Center-I, Cuff Parade, Mumbai, either in person or through your Advoeate or through your authorized representative and ‘0 inform the committee About the progress inthe appeal filed by LOIL and group companies, ‘cn, Lou (Y.C. PARIKH) Secretary (Legal) For and on behalf of the ‘Committee Enel: As above cc: Mr. Govind B, Solanke, Advocate for LOIL Group, 10, Sai Sadan, 4" Floor, 68, Janmabhoomi Marg, Near Flora Fountain, Opp. Siddharth College of Commerce, Fort, Mumbai - 400 001.~ SPP MIPBAT CFO & RM7OLZABLLPIN Counter Horit, TorLDN, GREENS FOOD,LTD ‘eID G.P.0., PDW}O006 ~~ a GE PAO LAR MAS ils evinnvabointinnerees Pat 0 LFeese3.00), 07/0205 1808'“—~ rack en atria p09 A EMSS753040031N Canter Host Otter ‘TorL OL. ERSEAS, FOLDS LTD WhPAgrans,, “7 ata 00 (Fert .02005," Taseeshs6.00¢Crack a | 3233 COMMITTEE CONSTITUTED UNDER BOMBAY HIGH COURT ORDER DATED 2"° SEPTEMBER 2014 IN SUIT NO. 173 OF 2014 AND OTHER RELATED SUITS Mr, Justice V.C Oaga Mr. J. $ Solomon Mr. Yogesh Thar Former Judge ~ Bombay ‘Advocate & Solicitor Chartered Accountant Chairman Member, Member 51, Rajgit Chambers, 6% Floor, Calcot House, 3* Floor, Merchant Chamber, 3" Floor, 41, Opposite Customs House, 8/10, M. P. Shetty Marg, ‘New Marine Lines, 12/14 Shahid Bhaget Singh Re, (Tamarind Street), ‘Mumbai 400020 Fort, Mumbai ~ 400 007 Fort, Mumbai 400023. Tel:+91-22-22014922 Tel: +91-22-22658622 ‘Tel:+91-22-66273900 Email: yogesh.thar@bsmeo.net Em Vijayedaga@zgmail.com | Email: jonathan.solomon@slmneo,in Rey Mo: 6 gaes-(6 py COURIER EMAIL Date: 4 April, 2015 1, LOTL Continental Foods Ld., SCO 18-19, 1 Floor, Sector 9-D, Madhya Marg, Chandigarh ~ 160017. eZ "LOM. Heath Foods Lia SCO 18-19, 1* Floor, Sector 9-D, Madhya Marg, Chandigarh ~ 160017. 3. LOIL Overseas Foods Lid. 4128, 2" Floor, Nay Bazar, Dethi ~ 110 006 Re: Notice to appear before the committee on 13" 15 at 2:04 in respect of amounts due and payable to National Spot Exchange Ltd. CNSEL”). Dear Sir/Madam, At the meeting held before the committee on 22™ January 2015, you were directed to inform the Hon*ble Committee on 19" March 2015 about the progress in the Appeal filed by you. ‘Thereafter, by letter dated 18" March 2015, your Advocates were informed of the adjoumment of the ineeting on 19" March 2015 to 27" March 2015. However, on 27 March 2015, none appeared ‘on your behalf and the matter is now adjourned to 13" April 2015 at 2:00 p.m.34 Please find attached herewith a copy of the Order Sheet No. 1713 dated 22 January 2015 and Order Sheet No. 248 dated 27 March 2015. ‘You are called upon to appear before the Hon’ ‘ble Committee on 13" April 2015 at 2:00 Pam, at Committee Room, World Trade Center, Centes-1, Cult Patade, Mumbai, either in person or through your Advocate or through your authorized representative and to inform the committee about the progress in the appeal filed by LOIL and group companies a - flrad ant PARIKH) Secretary (Legal) For and on behalf of the Committee Enel: As above ce: Mr. Govind B. Solanke, Advocate for LOIL Group, 10, Sai Sadan, 4" Floor, 68, Janmabhoomi Marg, ‘Near Flora Fountain, Opp. Siddharth College of Commerce, Fort, Mumbai ~ 400 001.SAPOD MormAT GPO -Coserta EPRI Pats3T-00 "(Wr besR0,00) DOVES TDR set Taxessfisb, OTRO C4" ee a usb near ce0- ‘bat135.00 (LF tA 5.00), C7/OAZONS 162. > vores 35COMMITTEE CONSTITUTED UNDER BOMBAY HIGH COURT ORDER DATED 2"? SEPTEMBER 2014 IN SUIT NO, 173 OF 2014 AND OTHER RELATED SUITS, Mr, Justice V.C Dagt Mr.J.$ Solomon Mr. Yogesh Thar Former Judge - Bombay Advocate & Solicitor Chartered Accountant Chairman Member Member 51, Rajgir Chambers, 6 Floor, Calcot House, 3” Floor, Merchant Chamber, 3" Floor, 41, ‘Opposite Customs House. 8/10, M. P. Shetty Marg, ‘New Marine Lines, 1214 Shahid Bhagat Singh Re, (Camavind Street), ‘Mumbai 400020 Fort, Mumbai ~ 400 001 Fort, Mumbai 400023. Tol:+91-22-22014922 Tel: +91-22-22658622 “Cel:491-22-66273900 Email: yogesh.thar@bsmco.net Email: vijayedaga@gmail.com | Email: jonathan.solomon@simnco.in Rad Neo 6 o3?*S “Spy covRIER/ E-MAIL Date: 4 April, 2015 To, , 1, LOI Continental Foods Ltd. SCO 18-19, 1* Floor, Sector 9-D, Madhya Marg, Chandigarh — |60017. 2 LOIL Health Foods Lid. $CO 18-19, 1" Floor, Sector 9-D, Madhya Marg, Chandigarh ~ 160017. 3. LOIL Overseas Foods Lid 4128, 2" Floor, Naya Bazar, Delhi - 110 006. Re: tice to appear before ittee on 13 at 2:00 pam. in respect of amounts due and payable to National Spot Exchange Ltd. (‘NSE Dear Sir/Madam, At the meeting held before the committee on 22" January 2015, you were directed 10 inform the Hon"ble Committee on 19" March 2015 about the progress in the Appeal filed by you. Thereafter, by letter dated |$" March 2015, your Advocates were informed of the adjournment of the meeting on 19 March 2015 to 27" March 2015. However, on 27 March 2015, none appeared on your behalf and the matter is now adjourned to 13" April 2015 at 2:00 p.m.37 Please find attached herewith a copy of the Order Sheet No, 17B dated 22" January 2015 and Order Sheet No. 24B dated 27" March 2015. ‘You are called upon to appear before the Hon’ble Committee on 13% April 2015 at 2:00 pan, at Committee Room, World Trade Center, Center-1, Cuff Parade, Mumbai, either in person ‘or through your Advocate or through your authorized representative and to inform the committee about the progress in the appeal filed by LOIL and group companies. Encl: As above cc; Pte Sov B. Solanke, ‘Advocate for LOIL Group, 10, Sai Sadan, 4" Floor, 68, Janmabhoomi Marg, ‘Near Flora Fouttain, Opp. Siddharth College of Commerce, Fort, Mumbai ~'400 001. sea) ah .C. PARIKH) | Secretary (Legal) For and on behalf of the Committee+ Meet betes BLS LL.B. ADVOCATE, HIGH COURT, BOMBAY. ‘OFFICE: 10, Ssi Sadan, 4 floor, 6, Tanmabhoomi Marg, Neat Fora Fountain, Opp Siddharth College of ‘Commerce, Fort, Mumbai 400 00). COURT; A.A.W.LRoom No.36, I" Floor, High Court, Fort, Mumbai-400 032, TEL __: Mob. 8976171169, Off 2043595 By Hand & Speed Post AD April 13, 2015 Mr. YC Parikh, Secretary (Legal) Committee Constituted under Bombay High Court Order dated 2™ ‘September 2014 in Suit No. 173 of 2014 and other related suits Room No. 15, 1" Floor, World Trade Centre Centre- 1, Cuffe Parade, Murnbai- 400 005 Sir, Sub: Order dated 27.03.2015 passed by the Hon'ble Committee and notice dated 04.04.2015 for the hearing dated 13.04.2015. I represent for LOIL Overseas Foods Limited, LOIL Health Foods Limited and LOIL Continental Foods Limited, [hereinafter called as “ MY CLIENTS”] who have instructed me to write to you as under. You would kindly recali that vide my letter dated 22.01 2015, I had informed you that my clients had preferred an appeal against the order dated 02.09.2014 passed by the Hon'ble Bombay High Court constituting this Hon'ble Committee and that, upon mentioning, the same was directed to be listed, on 05.01.2015, along with other similar Appeals. The Hon'ble. Committee was, therefore, requested to defer the present proceedings till such time as the said Appeals were heard by the Hon'ble High Court. Upon receipt of my aforesaid letter, the Hon'ble Committee vide its order dated 22.01.2015 was pleased to deter the present proceedings to 19.03.2015 “to report progress of the Appeal”. However, through communication dated 18.03.2015 of this Hon'ble Committee, the said date of 19.03.2015 was Postponed to 27.03.2015 on the request of NSEL but because of some miscommunication and inadvertence, { could not Present myself before the Hon'ble Committee on the said date i.e. 27.03.2015 so as to report the progress of the pending Appeal on behalf of my clients, {t is submitted that, as already intimated vide my eatlier communication dated 22.01.2015, the aforesaid appeal filed by my clients (along. with similar appeals) came up for hearing before a Bench of the Hon'ble Chief Justice, Bombay High Court on 06.01.2015 when the Hon'ble Chief Justice was. pleased to recuse39 2. himself fiom the matter and directed that the same be listed before some other Bench. However, a similar Appeal was listed before the Bench on April 1, 2015 for hearing but for paucity of time the said Appeal was adjourned to April 8, 2015 and again to April 9, 2015, Since the both dates the said Appeal could not be taken for hearing on account of busy schedule of the Bench. That my clients are therefore, sincerely making efforts to ensure that the subject Appeal may also be taken up on priority. The Appeals have since not been listed and it is ‘expected that the same will be listed shortly. In view of the above, since the Appeals are still pending adjudication and its outcome is still awaited, itis respectfully requested that as observed in the order dated 22.01.2015 of the Hon'ble Committee, the present proceedings be further deferred to await the outcome of the said Appeals. My Clients respectfully reiterate that, while they have the highest regard for the Hon'ble Committee, due to the pendency of the aforesaid Appeal. it will not be possible for them to submit to the jurisdiction of the Hon'ble Committee. ‘This is without prejudice to my Clients’ rights and contentions in Suit No. 173 of 2014 and the Appeal preferred by them as well as any other legal remedies which my clients may opt in due course of time ‘That itis the endure of my Clients that the Appeal should be taken on Board at the earliest. Needless to say that it shall not cause any prejudice to either of the parties if the proceedings before this Committee is differed till the time the said Appeal are heard. ‘Thanking you, ontfce Advocate fe ig, ie at kancc BEFORE THE COMMITTEE CONSTITUTED UNDER THE BOMBAY HIGH COURT ORDER DATED 2= SEPTEMBER 2014 IN SUIT NO. 173 OF 2014 AND OTHER RELATED SUITS COMPRISING OF MR. JUSTICE V.C.DAGA (RETD,) CHIARMAN, MR. J.8.S0LOMON (ADVOCATE AND SOLICITOR-MEMBER) AND MR. YOGESH THAR (CHARTERED ACCOUNTANT MEMBER) MODERN INDIA LIMITED & ORS »-PLAINTIFFS vs. FINANCIAL TECHNOLOGIES (INDIA) LTD. AND OTHERS «DEFENDANTS APPEARANCES: Mr. Amect Naik with Ms. Anuja Jhunjhunwala, Mr. Chirag Kamdar , Mr. Abhinav Chandrachud and Mr. Amey Mirajkar, i/b Naik, Nail and Co. for NSEL Mr.Jaideep Singh Khattar, Advocate for NSEL Mr, Bihari Lal, Mr, H.B.Mohanty, Mr. Santosh Dhuri and Mr. Vishal Pokare representatives of the NSEL Mr, Akshay Patil, Advocate, Mfr. Akshay Baragara Mr. Ashwin Bhadang i/b Federal and Rashmikant for plaintiff in suit no. 173 of 2014 Ms.Nidhi Shukla, Advocate and Mr. Chirag Shah for NAARA Mr. Prasad Satam, P.l.for EOW Mr, Ajit Sakhare, Dy. Collector and Competent Authority present Mr.Bhushan Shah with Ms. Chinmayee Jagtap, Advocates i/b Mansukhla] Hiralal and Co. in L.J.Tanna suit. Mr. Raheel S. Patel i/b Nanavati & Assocdiates for N.K. Proteins 40i Mr. Madhur Rai with Mr. Arun Shilwant for M/s Vimaladevi Agrotech Ltd. Mr. Padmakar 8.Garad, Advocate for State Bank of Bikaner and Jaipur (Vimaladevi matter) with Mr. I{.N.Khan, Law Officer, SBBJ, Mumbai Advocate Ms.Vecna Shravanakrishna with Advocate 8.Chakraborti ib Juris Corp. representing Union Bank of India Mr. Manjhoj Shah, Mr. Champat Dhir, Mr. Rajesh Kamani and Mr. Manoj Shah investors present. Mr. Girish Dev for NAARA Mr. Sumit Patni, Advocate i/b Mr. Govind B.Solanke, Advocate for LOW. Group. ORDER SHEET NO, 26A (Dated 13% april, 2015 } L Mr. Sumit Patni, Advocate i/b Mr. Govind B.Solanke, Advocate circulated a letter dated 13% April, 2015 requesting for adjournment on the ground that the matter is pending for admission before the Division Bench of the Hon’ble High Court of Bombay. Having considered the request, we are adjourning the matter to 20% April, 2015 at 2.00 p.m. However, we direct LOIL Overseas Foods Limited, LOIL Health Foods Limited and LOI Continental Foods Limited that if for any reason the matter is not taken up for admission or that they are not able to obtain stay to the order constituting the present Committee, then in that event, LOIL shall produce their Books of Account on 20% April, 2015 without prejudice to their rights involved in the appeal. These directions are being issued to avoid further adjournments and further loss of time to comply with the directions which were and are being issued by the Committee.2. By last Order Sheet No.11-B dated 3: December, 2014, LOIL group was directed to respond to the compilation of documents submitted by NSEL us well as they were directed to produce the Account Books and affidavit disclosing the assets held by the Company and the personal assets of the Directors. This Committee is reluctantly required to pass this order in view of the fact that this matter is adjourned for more than four to five ‘occasions only on the ground that the appeal is pending before the Hon'ble Bombay High Court. In view of the committee no prejudice would be caused to LOIL Group if they comply with the directions of the Committee without prejudice to their rights involved in the appeal. That would by no means amounts to submitting to the jurisdiction of this Committee. 3. Stand Over to 20% April, 2015 at 2.00 p.m. @ JUST (RETD.) ‘CHIARMAN EE 7 JS. [ON ‘MR. YOGESH THAR a ADVO! AND SOLICITOR CHARTERED ACCOUNTANT MEMBERSBanan—"yy" 3 i BEFORE THE COMMITTEE CONSTITUTED UNDER THE BOMBAY HIGH COURT ORDER DATED 2" SEPTEMBER jou IN SUIT NO. 173 OF 2014 AND OTHER RELATED SUITS COMPRISING OF MR. JUSTICE V.C.DAGA (RETD.) CHIARMAN, MR. J.S.SOLOMON (ADVOCATE AND SOLICITOR-MEMBER) AND MR. YOGESH THAR (CHARTERED ACCOUNTANT MEMBER) i MODERN INDIA LIMITED & ORS vs, FINANCIAL TECHNOLOGIES (INDIA) LTD. AND OTHERS DEFENDANTS APPEARANCES: a I Mr. Ameet Naik with Mr. Chirag Kamdar, Ms. Anuja Jhunjhunwala, Mr, Amey Mirajkar,Mr.Jasideep Singh Khattar, and Ms. Suchita Panicker i/b Nail, Naik and Co. for NSEL | Mr. Amol Bavane and Mr. H.B.Mohonty representatives of NSEL Mr. Bhushan Shah with Ms. Namrata Shah with Mr. {Nirav Marjadi Advocates i/b Mansukhlal Hiralal and Co. in Lis-fanna suit no.121 of 2014, Mr.Ravi Warrier, Hiral Takkiar, Mr.Ashwin Bhadang i/b Péderal and Rashmikant for plaintiff in suit no, 173 of 2014 Mr. Dattatraya Patil, Asstt. Police Inspector for EOW | Mr.Bhushan Shah with Ms. Chinmayee Jagtap, Advocate! Mansukhlal Hiralal and Co. in L.J.Tanna suit. Mr.Ajit Sakhare, Local Authority and Deputy Collector Mr. Rajesh Kamani, Mr. Dilip C.Shah, Mr. Bhavesh Lakhwanj, Mr. Anil Sonthalia investors ! Me-Durgsprasad Poojari i/.b PDS Legal for Metkore Alloys & Industries Ltd.44 and Ms.Nidhi Shukla, Advocate for NAARA Mr.Padmakar Garad, Advocate for State Bank of Bikanel i i | t r | Jaipur (Vimladevi Agro group) Mr-Virendra Ichallaranjikar and Mr. Aran Shilwant Advocates i/b { PRS Legal for Vimladevi Agrotech. i Mr. Chahet, Mr, Ratanchand Jain and Sons for Metakore | Mr.Anil Lala with Ms.Beerta H.Bajwa i/b M/s Lalla and |Lalla, Advocates for Mr. Shirish Betgeri Mr. Sunil Patni i/b Mr.Govind Solanke for LOIL Group ORDER SHEET NO, 28A (Dated 28% April, 2015 ) L We are informed that following parties are in gppeal ; | before the Hon’ble High Court. i) ARK Imports Pvt, ii) LOIL Group iii) N.K, Proteins and iv) P.D.Agroprocessors Pvt. Ltd. | 2 We are further informed that appeal fie by N.K Proteins is being heard along with the appeal of White Water Foods Pvt. Ltd. and that the same are part heard. In this view of the matter, all the above four matters are adjourned sine die. i 3 After disposal of the appeals, Mr. Naik, Advocate appearing for NSEL shall inform this Committee about the same. Tnereafien— fresh dates shall be fixed subject to the decision of the appeals. JUSTICE V.C,DAt pao ‘ ae « J-S.SOLOM YOGI THAR i i ADVOCATE AND SOLICITOR CHARTERED eaev2 inmsl 2744.14group.sew ORDINARY ORIGINAL CIVIL JURISDICTION, x APPEAL (L) NO. 741 OF 2014 XQ WITH QO NOTICE OF MOTION (L) NO. 2744 OF 20: IN APPEAL (L) NO. 741 OF eee w Q IN THE HIGH COURT OF JUDICATURE AT BOMBAY RR N.K. Proteins Limited lant Vis. Modern India Ltd, & ors. = ..Respondents oor Mr, Milind Sathe, Sr. ivi ei ep Sancheti, Sr. Advocate with Me Mr. Vishal Maheshwari jandiSh Chaudgar, Ms. Melini D'Souza, Mr. Bankim Gangar i 'Legat-ASsociates for the appellants. Mr, Mustafa Doctor within, Gautam Ankhad with Mr. Akshay Patil, Mr. Rashmikant, Mr.Hiral Thakkar, Mr. Ashwin Bhadang i/b. Federal and Rashmikant for, Pespondents 1to 4. Mr. Jani » Sr. Counsel for defendant no.5. ON, 1 0 (eds . advocate with S.U. Kamdar, Sr. Advocate with roy dar with Ameet Naik, Anuja Jhunjhunwala, Abhishekh Kale Naik aS Naik Company far respondent no.6. WITH © APPEAL (L) NO. 766 OF 2014 WITH © NOTICE OF MOTION (L) NO. 2879 OF 2014 &) WITH NOTICE OF MOTION (L) NO. 2880 OF 2014 IN APPEAL (L) NO. 766 OF 2014 White Water Foods Pvt. Ltd. & ors. » Appellants vis, 1! Downloaded on = 18/08/2015 18:22:57:46 2/22 nmsl 2744,14group.sxw Modem India Ltd. & ors. «Respondents Ry YS Mr. Girish Godbole with Mr. Amitabh Chaturvedi, Mr. Utkarsh Shailesh Mendon, Sunil Patel i/b. Sunil & co. for the appellat a Spe Mr. Mustafa Doctor, Gautam Ankhad, Akshay Patil, Mr. Résh) fesse with Ms. Hiral Thakkar, Mr. Ashwin Bhadang i/b Fedefar& R: cant for respondents 1 to 4. e \. Mr. Janak Dwarkadas, Sr. Counsel for defendant no. Mr. Ravi Kadam, Sr. Advocate with amdar, Sr. advocate with Chirag Kamdar, Ameet Naik, i jala, Abhishek Kale i/b. Naik Naik for respondent no.6. Kos Reh OF 2014 NoTici ON, N 0 NO. 2915 OF 2014 WITH NOTICE OF MOTION (L) NO. 2916 OF 2014 \ N APPEAL (U) NO. 767 OF 2014 fn re) Pvt. Ltd. & ors. . Appellants india Ltd. & ors. ...Respondents Ir. M.M, Vashi, Sr. advocate Mr. Amitabh Chaturvedi, Mr. Utkarsh Tiwari, Shailesh Mendon, Sunil Patel i/o. Sunil & co. for the appellants. © ON Mr, Mustafa Doctor, Gautam Ankhad, Akshay Patil, Mr. Rashmikant with @ Ms. Hiral Thakkar, Mr. Ashwin Bhadang i/b Federal & Rashmikant for respondents 1 to 4. Dr. Birendra Saraf with Mr. Ameet Naik with Chirag Kamdar, Anuja Jhunjhunwala, Abhishek Kale i/b. Naik Naik for respondent no.6. 1 Downloaded on - 18/06/2018 15:22:87 13/22 msl 2744.14group.sxw oS CORAM: NARESH H. PATIL AND ~~ a 7 ViL. ACHLIYA, JJ. SS RESERVED ON 7° Mey, 2038, /=NT PRONOUNCED ON 17" June,2918-) ) yo ¢ \) — The matter was closed for roe hor May, 2015. Immediately thereafter summer vacation sant ) \ QV] ») 2. The appell naloneed the offer dated 2" September, 2014 passed by the | at ed Single Judge :1 Notice of Motion No. 240/2014 in 1 Su No. 173/14. The leamed Single Judge passed the one er pyar to the minutes of order drawn by consent aw Raa plaintiffs and original defendant nos. 1 to 3 and 5 of uit, x &S Om CD O for short) a company registered under the provisions of the Companies The National Spot Exchange Ltd. (hereinafter referred to as NSEL, Act, 1956 was incorporated in the year 2005. The main object of the said company was of providing a platform for the purpose of trading (purchase and sale) of agriculture based commodities. In exercise of powers48 4/22 rams] 2744.14group.sxw conferred under Section 27 of the Forward Contracts (Regulation, et A 1952 respondent no.6-NSEL was exempted from the operat ce the” provisions of the said Act by a notification dated 5” June, > eA) er the said notification the activities of the trading ech change of a ee NSEL were not required to be regulated by Fobdard sept Commission (hereinatter referred to as ‘FMC’ for short). 4. The appellants N.K. Pri Ss. that it became member eS of FMC in the month ctober 8) As a result the appellant was Oy permitted to carry < on the said Exchange for itself and on behalf ofits cients. Thé'sther appellants also became members of the NSEL and stay trading activities. By gazette notification dated 6" Febuag/2 S19, the FMC was appointed as a designated agency by the PN Cehera fovérnment. It is stated that under the directions of the Central & iment, NSEL by circular dated 31" July, 2013 had suspended all - ie contracts until further notice. 5, It is contended that as a result of this development many persons/entities who allegedly claim to have invested their funds with NSEL allegedly did not receive back their money. A complaint was lodged by one Mr. Pankaj Saraf on which First Information Report being 1: Downloaded on - 10002016 15:22:575) 49 5/22 nmsl 2744,14group.sxw FIR No.216/2013 came to be registered soara Se A Directors/management personnel of NSEL under various provisions the Indian Penal Code and MPID Act. O “> ) 6. Some disputes arose between the nse (ond nd file appellant N.1 Proteins Limited which culminated into NSEL. inven arbitration clause and preferring an application undéNSegtign 9 of the Arbitration and Conciliation Act, 1996 befgea ae Court for interim orders for recovery of alleged due: Si Sabb N.K. Proteins Limited disputed the claim of recov as made by the NSEL in the said proceedings. It is submitted that by an order dated 23" September, 2013 the High cout leclined to grant ad-interim relief in favour of NSEL Cie IL had failed to substantiate its claim for the alleged ou pe against the appellant-N.K, Proteins Limited, & The learned Senior Counsel Mr. Sathe in Appeal (L) 742/2014 appearing for appellants submitted that the learned Single Judge has committed error in passing the impugned order. The order is against the mandatory provisions of Civil Procedure Code. Reference was made to the provisions of Order-26 and Order-1, Rule 8 of the Civil Procedure Code. It was submitted that the consent of the parties for drawing ‘tt Downloeded on - 1406/2015 15:22:0790 6/22 numsl 2744.14group.sxw minutes of order was a collusive act of the parties. Asking the app! at to appear before the Three member Committee constituted by, ia would amount to compelling the appellant to open its detereR ees Spee Committee. In view of the fact that criminal case hie(bs (bdeh lodged, it would not be reasonable and proper to come tne ss to open its defence before the Three Member Committee. The learned Counsel referred to proceedings of SY submitted that the NSEL failed to secure any interim ord qf @ N.K. Proteins Limited in the arbitration cma eas i ‘some of the proceedings/notes of the Committee cee jived that Committee is proceeding in a coercive manner and exéeéding its jurisdiction as prescribed under the rovisions CP and the order passed by the learned Single Judge. pr ER 9 The ips ebing in an arbitrary, harsh and unreasonable manner. SO) &S uy learned Senior Counsel Shri Sathe for the appellants bmitted that third party proceedings were not initiated against the © appellants-N.K, Proteins Limited under Order-1 Rule-8, neither such proceeding is permitted, in the facts of the case, to be initiated. The appellant N.K, Proteins is not a party to the present subject Suit. Order of copy of minutes was even not handed over to the appellant before the impugned order was passed. Learned Counsel submitted that Three it Downloaded on = 160@2018 18:22:87SL 7/22, ms! 2744.14group.sxw : Ww Member Committee cannot act like a Civil Court. § a LOY 9. in'support of his contentions, Leamed Counsel cusshedpa on the judgments in the case of adam Seo_and.ang We Ye State of (Le ae : S2 10. Leamed Senior GoGngpl Shri M.M. Vashi in Appeal (L) No. 7767/2014 one appellant is ready to furnish the information ina sesiedcedgh disdosng the information before the learned Single Judge, beacon orders accordingly, but it would not be reasonable and RS pel disclosure of information before the Committee as it will Prejudice to the appellant in various other proceedings and sel of the Suit pending before the learned Single Judge of this Court. a Learned Counsel Shri Godbole appearing for the appellant in Appeal (L) No. 766/2014 adopted the arguments advanced on be alf of other appellants on the legal issues raised. The learned Counsel 1 Downloaded on - 18002015 15:22:57oe 8/22 nmsl 2744.14group.sxw submitted that the Committee is functioning beyond the scope of Séctic | 75, Order 26 of the Civil Procedure Code. In case the conitoe is permitted to go ahead with the sweeping powers which it wise and later it is found that order of the learned Single gee proves or the Committee exceeded its jurisdiction then the cing rere would be ib) futile. 12. In support of his one rk :d Counsel Mr. Godbole relied . \ NS on the case of ALR. Antulay vib» RE Nayak & anr, {(1988) 2 SCC 602}. 13. The learned Counsel appearing for the NSEL Shri B.P. Saraf submited that sth ent in Appeal (L) No. 767/14 did not contest the issue by fe 3) gle Judge. It is improper now to file appeal against Ney <)adoed by the Single Judge. If the appellant is aggrieved, there Fi Ae dy of filing review petition before the Single Judge. Learned ounsel Submitted that appellant had even made part payment during the ' proceedings initiated before the Committee. The appellant has appeared before the Committee and agreed to disclose the necessary information according to the leamed Counsel. 14, The learned Counsel Mr. Mustafa Doctor appearing for tt Downlosded on = 14062018 15:22:57 :::53 9/22 ams! 2744.]4group.sxw ‘ respondents 1 to 4 submits that Regulatory Commission and Bie Ce necessary parties are not made party to the appeal. It was_submitte SO that the order passed by the leamed Single Judge is re and ; & proper. The Three Member Committee did not ad methods. SS Learned Counsel referred to provisions of ‘ef Order 26 Rule 10(a), 11, 12 and 16 of the CPC. it was submitiédthat the Committee had already conducted 31 a. had participated in the said proceedings. ~~ : SW) 15. In support of His bép@ntions, Learned Counsel Mr, Mustata Doctor \ relied on the judgment inMhe case of T.N. Godavarman Thirumulpad {50) vis. Ur fone India & ors. {(2013) 8 SCC 198}. for) Wor UY Caspinéd Senior Counsel Shri Ravi Kadam appearing for ident no.6-NSEL submitted that impugned order was passed in five its. The N.K. Proteins Limited has defaulted in payment of Rs.990 Crores. In view of the provisions of Civil Procedure Code and the High Court Original Side Rules, appropriate proceedings were initiated against the third parties. Leave was granted against third party under Order-1, Rule-8 by the learned Single Judge which was not challenged by either of the appellants. There are 13000 investors involved. By referring to order Downloaded on - 1006/2015 98:22:57 154 10/22 mal 2744, vow sew passed by the Single Judge and fear and apprehension conse regarding the functioning of the Committee, the leamed Seni coins” submitted that power to adjudicate is retained with the Sei) ui. The Court has not delegated its power to the Committee is supposed to submit the report in ae hee terms of the reference, to the Court, and it will be for the conta take final decision after following appropriate Bane 1. The learned Counsel submitted that even in view, of jr facts situation and to protect the money of the large sSOe Jurt had to invoke its jurisdiction and power — | ain se his contentions, leaned Counsel Mr. Ravi Kadam \? ion 151 of the Civil Procedure Code. relied 8 68 Syiplent in the case of Manohar Lal Chopra vis. Rai do Raja Seth Hiralal {AIR 1962 SCC 527} and on the case ) 'S.S. ‘Munnalal & ors. v/s. S.S. Rajkumar & ors. {AIR 1962 SC 6) 18. The learned Senior Counsel Janak Dwarkadas appearing for defendant no.5 in Appeal (L) No. 741/14 and Appeal (L) No. 766/14 submitted that in the facts of the case the learned Single Judge was fully justified to exercise powers under Section 151 of the Civil Procedure 1! Downloaded on = 180672015 15:22:87 3:122 ms] 2744,14group.tew Code. Even no consent of the parties was required to pass such offers. The Court suo moto could take cognizance and pass such one the" submissions of the Counsel, the Committee had no itory functions. The Counsel on instructions submitted thi op Four could very well clarify further so as to clear the cloud and apprehension of the Party. The Committee is supposed to submit a proposal and not to decide any issue. NCS O d 19. In support of Ceci Learned Counsel Mr. Janak Dwarkadas placed re e cannes in the case of Dharni Dhar & ors. vis. Chandra Shekhar & ors, Khushalrao & ors. vis. Bapurao Ganpatrao, Mara e & ors, {AIR (29) 1942 Nagpur 52}, Nani Lal De & ors. “8 ja} De & ors, {AIR 1953 Calcutta 513}, Chitivalasa Jute Sor “Jaypee Rewa Cement {(2004) 3 SCC 8}, Mis. PT. (ie aria & co. vis. The Union of India {1972 BLR vol. LXXVi} and ~S the case of State Bank of india v/s. Ranjan Chemicals Ltd. & ant. e {(2007) 1 SCC 97}, 20. The learned Senior Counsel Shri Kamdar for respondent no.6 ‘Submitted that in accordance with provisions of the High Court Original Side Rules and provisions of Civil Procedure Code, the learned Single 1 Downloaded on - 18062015 15:22:87 313/22 msl 2744.14group.sxw Judge was justified and empowered to pass the impugned order. inate the High Court had restricted the powers of the Committee. Relanee, s" > placed on Order 26, Rule-10, 11 and 12 of the Civil ProvediRCe ob The Committee is supposed to decide {iability of the parties (eae steps to recover the amount which was defaulted. Thé oa was to make report to the Court and arrive at mutual settlemenit~it was open for any of the appellant and aggrieved (toSapproach the learned Single Judge in case they are aggrieved * der passed by the Committee MANS? or the report filed. The(learied-Coyng submitted the Committee had recommendatory ‘adjudicatory but in the peculiar facts and circumstances the Committe was justifed in going through the accounts of the pacie, Seeung their presence, evaluate the proposal for settlement ian) or otherwise. or Ki Kamdar placed reliance on the judgments in the case of Stott Is. West Yorkshire Road Car Co. Ltd. And anr. v/s. Home Bakeries Ltd, & anr. {(1971) Megaw L.J. Page 651}, Shah Babulal Khimji vis. Jayaben D. Kania & anr. {(1981) 4 SCC 8} and in the case of Burford vs. Clifford {(1932) Chancery Division, 122}. 22. The learned Senior Counsel Shri Sancheti for the appellant in 1st Downloaded on = 1000/2018 18:28:57:13/22 nmsl 2744.14group.sxw. Appeal (L) No. 741/2014 in rejoinder of the arguments at nae submitted that Notice of Motion is pending before the lean ie Judge. The appeals are filed against the ad-interim orders nce was made to the provisions of Order-23, Rule-3-of thes (Civil i) Procedure Cade. Learned Counsel submitted that N.K. Pr ars ip appellant is not a third party to the Suit. NSEL had already fled a separate suit against the appellant which is penditig(~the NSEL has liberty in law to proceed against the appellant ros the, fantive Suit. The learned ©, \ ) at N.K. Proteins Limited is not the order passed by the learned Single Counsel submits that in even a third party to Judge could be made je to the appellant-N.K. Proteins Limited, 23, oe above submissions, learned Counsel Mr. Sancheti Ye judgments in the case of Gurpreet Singh v/s. Chatur Bhuj — 41 SCC 270}, K.K. Velusamy v/s. N. Palanisamy {(2011)11 oe °C 275}, Cotton Corporation of india Limited v/s. United industrial Ve } © Bank Limited & ors. {(1983) 4 SCC 625} and in the case of MP. g 9) Sharma & ors, v/s. Satish Chandra District Magistrate, Delhi & ors, {AIR 1954 S.C, 300}. 24. We have heard the learned Counsel appearing for respective | Downlouded on = 18042018 15:22:87 ::58 1ay22 ams] 2744.14group.sxw partes at length. We have gone through the various case laws fel upon by the learned Counsel appearing for the respective hits Ye ‘support of their contentions. The learned Single Judge nad ssdarder in terms of minutes of the orders signed by-plal vey to 4 and defendants 1 to 3 and 5, Clause-4, clause-5 chee) of of the Minutes of the order and clause-10 reads as under: ee N \ "4, The Commitee, flay le notices to various nitee partes including the allegyij }etaultersithird parties, their client ros other‘pafty, and if necessary,t he Committee an application to the Court after giving notice the affected party (I) to request ' relevant authorities including the EOW, the Income Tax Prati (IT), the FMC etc. to furnish copies of Van Pelevant records to the Committee for purpose of CN Ytafrying out the functions of the Committee as ah SO me by this order and/or (ji) to direct service of S&S summons, to order appearance of parties, to order discovery and inspection of various documents, production of the documents summoning the witnesses and enforcing the attendance and take all necessary steps for enforcement of the aforesaid directions as per the provisions of the Civil Procedure Code, 1908. 5(b) issue notices and call upon the alleged defaulting25. 59 | 15/22 inmsl 2744,14group.sxw Membersiclients of the members/defaulters/ of Sy Defendant No.2 or other parties to whom the monies of is the alleged defaulters can be traced and a. parties concerned, for the purposes of determi extent of liability, if any and prapose a = making a report to this Hon'ble irth directions. 5(e) The Committee maygive ions to Defendant No.2 for initiation, prose@uttog\and/or to defend any faulters, both civil and cometee ‘shall be entitled to approach this Hon'ble ~ te ee pe when the Committee realizes funds and ts and finds the matter to be ripe for distribution of < amounts amongst non-defaulting members and parties entitled tot he same, the Committee shall prepare a Teport to the Court. The parties will be at liberty to apply tot he Court on such report for distribution of amounts held by the Committee towards their dues." The learned Single Judge observed in the impugned order that implementation of the settlements and any coercive process required for 1 Downloaded on = 18/08/2098 95:22:57 2:160 16/22 msl 2744. pan sw ‘such implementation, can only be under the orders of the Court. fl Kee further observed that the Committee has dual function to perfor “th nm ya first place it shall conduct itself as a commissioner for in examination of accounts and render assistance ep or. facilitating the settlement between the parties. Thereattet te C8 fang would act 1 as a Receiver appointed by the Court in the 2 ate of preservation, custody and management of act The Court further observed that the Committee somaya tensive powers to examine the a lapiatn of witnesses. It further parties and require noes aN S observed as << The, NS the Committee, however, in the presdah case are restricted to calling for information at proposals of settlement in conjunction ip phe parties before the Court for collection and Xt oF of the funds and assets involved. The S Committee is simply permitted to call upon the various defaulting members/clients of the members/defaulters of Defendant No.2 or other parties and seek information and documents for the purpose of determining the extent of liability, if any, and propose a ' determination thereof by making a report to this Court for further directions.” 26. The learned Single Judge further observed that any party affected 1H! Downloaded on + 1806/2018 18:22:5761 17/22 msl 2744.1 4group.scw by any decision of the Committee shall be entitled to approach the The Committee was not authorised by the Court under the min, order to issue process by itself. The Court further observ of the impugned order that the Committee's may ate Minutes of Order proposed is to explore and negotiate kutu§l)settiements inter alia between the defendant no.2 herein and the alleged defaulters/third parties. : XS we) 27. In the minutes of: eet ise 5(b) it is mentioned that the Committee would hat 2 determining the extent of liability and propose a determination By making a report to the Court for further direction, In~ se (i) it was referred that any party affected by any decisio“ aa shall be entitled to approach the Civil Court. we 6 QO) 3 thrust of the argument of learned Counsel appearing for the pellant was that in view of the provisions of Civil Procedure Code and High Court Original Side Rules and the facts of the case the committee shall not be conferred with any adjudicatory powers. It shall be judicial forum which shall adjudicate and not the Committee. The Committee cannot be delegated powers of adjudication and in law the Committee need not enjoy such powers, The provisions of Section 75 of the Civil19/22 msl 2744.14group.sxw Procedure Code refers to powers of Court to issue commission: shi ign 75 reads as under: aC XS CO” “75, Power of Court to issue commissjons-- OHH such conditions and limitations as may 66 pre$fibed, the Court may issue a commission-- (a) to examine any wx () to make a local a Da SN ()to Oe or Net (d) to mi fartition; (e) to hold a Sefentific, technical, or expert ) 30. ‘It is clear from thérecord and the submissions advanced that A ci appellant- ins was not issued a third party notice by the original aint lated under the High Court Original Side Rules. It is sel a substantive suit has already been filed by NSEL oer ( pellant NK, Proteins. We find substance in the submissions {vanced by appellant N.K. Proteins that in absence of being a third party defendant to the suit, the appellant would not be bound to appear before the Committee in accordance with order passed by the learned Single Judge. In the case of N.K. Proteins-appellant the submissions advanced on behalf of the respondents that the order of the learned Single Judge would even apply to the appellant N.K. Proteins in exercise of powers64 © ) / 20/22, nmsl 2744,14group.sxw_ under Section 151 of the CPC is not convincing one. The pobls (y conferred on the Court under Section 151 of Civil Procedure code. are” : ASN? inherent powers of the Court. They cannot override HAS itive provisions of law. Such power could be exercise in gid ded sistance of si tN the substantive provisions of law, The NSEU had d ffi to secure any interim orders in the proceedings initiated against {Re NK Proteins in the ‘substantive suit. OS “SY % (OS 31, It was submitted by thet Counsel M.M. Vashi, that they Se have participated nee made part payment. K oA\ ire before the Committee and they have ee 32. Thérearged Counsel appearing for appellants have brought to our (Oy ™ es ie of the orders passed by the Committee. It was submitted by & imed Counsel that the Committed had directed that in case of iling to appear before the Committee, the EOW shall be directed to aw move for cancellation of bail. In one case the Committee ordered EOW to get in touch with counter part of the Jui Wargal to find out whereabouts of Mr. Sampatrao who was reported absconding. EOW was directed to report on the next date of hearing as to what steps are take to arrest Mr. Sampatrao. in view of the record placed before us and the provisions of ss Downloaded on ~ 180872016 18:22:57 ::63 19/22 ms! 2744, 14group.sxw 29. No doubt it is a case where the issue is raised ing investors’ money which was not been refunded or alleged! by the parties concerned. At the sametime the submistign advanced on behalf of the appellants is that plaintiffs will have to njake out their case before the Civil Court and they would be bound™by the adjudicatory proceedings of the Court. The ellants submitted that the Committee has proceeded to ee \ 1S as adjudicatory authority QP Myre’ which is impermissible it 30. It is clear from thé“record and the submissions advanced that appellant. ins was not issued a third party notice by the original plaintittg Oni lated under the High Court Original Side Rules. tis ace fat a substantive suit has already been filed by NSEL against - jpellant N.K. Proteins. We find substance in the submissions a anced by appellant N.K. Proteins that in absence of being a third party ©) defendant to the suit, the appellant would not be bound to appear before the Committee in accordance with order passed by the learned Single Judge. In the case of N.K. Proteins-appeliant the submissions advanced on behalf of the respondents that the order of the learned Single Judge would even apply to the appellant N.K. Proteins in exercise of powers 5: Dowinloaded on = 6042016 18:22:57 i:G4 20/22 nmsl 2744.1 ak sKw under Section 151 of the CPC is not convincing one. The nites conferred on the Court under Section 151 of Civil Procedure cee ae inherent powers of the Court. They cannot override ~~ jantve provisions of law. Such power could be exercise ir in-gl istance of the substantive provisions of law. The NSEU, fed i tile to secure any interim orders in the proceedings initiated against then NK Proteins in the substantive suit. AS ( 31. it was ee x ‘Counsel M.M. Vashi, that they have participated in’ ee 7 before the Committee and they have made part Payment. A oN \ 32. 7 = 3 Pounsel appearing for appellants have brought to our een of the orders passed by the Committee. It was submitted by oo imed Counsel that the Committed had directed that in case of i ling to appear before the Committee, the EOW shall be directed to move for cancellation of bail. In one case the Committee ordered EOW to get in touch with counter part of the Jui Wargal to find out whereabouts of Mr. Sampatrao who was reported absconding. EOW was directed to report on the next date of hearing as to what steps are take to arrest Mr. Sampatrao. In view of the record placed before us and the provisions of it Downlosded on = 16/06/2095 18:22:87 :::65 2/22 inms! 2744,14group.sew taw, we prima facie find that the appellant N.K. Proteins Limited BX ; Pr WQY) not a defendant nor third party to the subject suit shall ok be By to appear before the Committee under the impugned-rdei& Bagsed by the Jearned Single Judge. ( C | cued Snel (CS) Y ; 33. In respect of the other two @bie e are of the view that the Commitee shal uncon in ace SS in the provisions of Section 75 and Order 26 of the Civ eas Gby , | x ee | > (@) The Appeals are admitted. oN fp order we direct that the impugned order of learned Sing " igé passed on 2” September, 2014 shall not be operative | 7 caine fe appellant N.K. Proteins Limited. (c}) The impugned order passed by learned Single Judge shall be operative against the appellants in two appeals ie. Appeal (L) Nos. 766/2014 and 767/2014 on the following conditions. i) The Committee shall function in accordance with Section 75 of the Civil Procedure Code while discharging its functions under the Minutes of Order and the directions issued by the66 22/22 nnmsl 2744,14group.sxw learned Single Judge. gy OS fi) The Committee shall not have any veer ? After pronouncement of the order, the learne fos spondents. pray for stay of operation of the order. The request ig bjected to by the other side. In the facts of the case, we are not inclined to stay the ‘operation of the order. The neta ect (V.L. ACHLIYA, OS (NARESH H. PATIL, 3.) Ls. Panian. 2S, Downloaded on + 1408/2018 18:22:87 +Sinn) 61 BIC COMMITTEE CONSTITUTED UNDER BOMBAY HIGH COURT ORDER DATED 2" SEPTEMBER 2014 IN ‘SUIT NO.173 OF 2014 AND OTHER RELATED SUITS Mr. V. C. Daga Mr. J. 8. Solomon Mr. Y. A. Thar Former Judge, Bombay High Court | Advocate & Solicitor Chartered Accountant Chairman Member Member BY.HAND DELIVERY/COURIER/R.P.A.D/E-MAIL RefNo, (52. /15-26 Date; 10 August, 2015 To, 1. LOI Continental Foods Ltd., SCO 18-19, 1* Floor, Sector 9-D, Madhya Marg, Chandigarh - 160017. 2. LOI Health Foods Ltd. SCO 18-19, 1* Floor, Sector 9-D, Madhya Marg, Chandigarh - 160017. 3. LOIL Overseas Foods Ltd. 4128, 24 Floor, Naya Bazar, Dethi ~ 110 006. Re: Notice to appear before the committee on 24" August 2015 at 2:00 p.m, in_respect of amounts due and payable to National Spot Exchange Ltd, ACNSEL"), Dear Sirs, In view of the Appeals filed by LOIL Continental Foods Ltd,, LOIL Health Foods Ltd, and LOIL Overseas Foods Ltd,, in respect of Order dated 2 September, 2014 constituting the Committee, proceedings relating to LOIL Continental Foods Ltd, LOIL Health Foods Ltd,, and LOIL Overseas Foods Ltd., and their clients and related parties were adjourned by the Committee from time to time. The Committee has not been informed-Orders, if any, passed In the Appeals filed by LOIL Continental Foods Ltd, LOIL Health Foods Ltd., and LOIL Overseas Foods Ltd. ‘Address: 2* Floor, Committee Room (Aster), World Trade Centre-1, cuff Parade, Mumbal - 400005,In the circumstances, you are called upon to appear before the Hon‘ble Committee on 24% August 2015 at 2:00 p.m. at Committee Room, World Trade Center, Center-1, Cuff Parade, Mumbai and subsequent dates as may be fixed by the Committee, in person or through your Advocate or authorized representative and to comply with the directions Issued by the Committee under Order Sheet No.11 B dated 3*¢ December 2014 and Order Sheet No.26A dated 13% April 2015. oe Secretary (Legal) For and on behaif of the Committee 1 Geto: Mr. Govind B. Solanke, ‘Advocate for LOIL Group, 10, Sai Sadan, 4% Floor, 668, Janmabhoomi Marg, Near Flora Fountain, Opp. Siddharth College of Commerce, Fort, Mumbai ~ 400 001.69 $P-£0D NFRD POINT PO ei ENZ666451011N Canter 8o:3,0F-Codexis : ‘osLO CONTIN FD, m chandigarh, PING3EO0I7 Fron C PARI , FARES + 16:28 Tavessfs.6.006 ENZ6B44R0001N Ceanter Ho:3,0F Caer TouOTL ONES FOS, ell, PIN:110006 FroanY C PARIIN , #9 Wtsagrans, PatsS1.00 5 I9/CRDOI8 , 16277 Taxoess.6.006CTrack an maui agoet.gov.in> -F-00 HERD POIKT 0 En7686401151N Canter 1bs3,0P-CotesniA Tos, HEALTH FLIES LT, Tries ctansigarh, PINELGOOK7 From: C PARE, MS Wetgrans, 7 Aats5100 5 19/08/2015 , 16227 TasesiRs6.00¢CTrack ena indiagest.gov.i> |BLS LL.B. ADVOCATE, HIGH COURT, BOMBAY ‘GFRCE-10, Sai Sadan, #" floor, 6B, lanmabhaomi ivarg, Near Flora Fountain, Opp. Siddharth College of Commerce, Tel Fort, Mumbai- 400 001, Mob: 8976171169 , Off :022- 22043595 By Hand & Spoed Post AD ‘Auguse 24, 2015 Mc. ¥.C, Patikh, Secretary (Legal) Committee constitueed under Bombay High Couct order dated 02.09.2014 in Suit No. 173 of 2014 Room No. 15, First Floor, World Trade Centce Centre ~ 1, Cufffe Parde, Mumbai - 400 005, Sie Sub: Order dated 03.12.2014 and 13.04.2015 passed by the Hon'ble Committee and notice dated 10.08.2015 Tam in receipt of the subject norice dated 10.08.2015 (received on 19.08.2015) for 24.08.2015, on behall’ of My Clients, LOTL Overseas Foods Limited; LOIL Health Foods Limited; and 1.O1L Continental Foods Limited. On instructions of My Clients, while seferting and relying upon earlier responses sent by My Clients, my submissions are as follows : May T with respect bring to your kind atention that no amount is due oF payable to the NSEL by My Clients. However, being aggrieved by the non performance / breach commited by NSEL, My Clients filed vatious Suits against NSEL and its agents in the Coue of the Civil Judge (Senior Division), Fatehgath Sahib, Punjab and vide order dated 04.01.2014, Hon’ble Court was pleased to grant ad intetim relict 19 My Clients. Subsequently, the Suit No. 173 of 2014 was filed by one Modera India Private Limited against the NSEB. and othess, wherein the NSEL issued ‘Third Pacty Notices against My Clients. Hiven otherwise, the said proceedings initiated by NSH. subsequent to civil proceedings initiated by My Clicnts come within the ambit of Section 10 of the Code of Civil Procedure, 1908, Iris submitted that in a subsequent suit filed by My Clients agai others, vide order dated 04.08.2014, Learned Civil fudge Genior Div Fatehgarh Sal wed summons of the said S way of an ex-parte ad interim ordee dite jon), it to the Defendants and, by red as under “the defendants, their agents or rpprecentatves ave restrained from taking aay coercive steps in any aauuaee against the plaintfli for determination of the bility af the pai ‘ill futher orders.” (ennphasis supplied)WL ‘That while constituting the Committee, vide order dated 02.09.2014 passed in Suit No. 173 of 2014, the Hon'ble High Court was pleased to observe that the Committee would not be authorized to take any coercive steps. In any case, the present Committee was constituted only to facilitate settlement between parties agreeable to settle and not to adjudicate or investigate claims and dispute which were alteady sul judice and pending adjudication before competent Coutts. ‘That this Hon*ble Committee tken up the matter on 03.12.2014 wherein orders purported to have been ps My Clients have setious reservations and seeking liberty to respond to the same at an approptiare time. Needless to say that My Clients have aleeady preferred Appeals against the order dated 02.09.2014 passed by the Hon'ble High Court constituting this id by this Hon'ble Committee to which le Committee and are sincerely making efforts to ensure that their Appeals may be taken up on priority. “That while taking into co sidecation the fact that various Appeals are pending hearing before the Hon'ble High Court, the proceedings before this Hon"ble Commitece were adjourned sine die. Relevant portion of the order dated 28.04.2015 of this Hon'ble Commitee is reproduced below: “1 (eure informed that jallowing parties ure in appeal before the Hom ble High Court ARK Imports Prt i) LOL Gimp ii) NK Proteins ant in) PLD. Aympracesiars Prt, Lid, 2 We are further infornel thar appeal filed by NK, Proteins is being beard along with the appeal of White Water Poods Pot, Lid. and that the same are part beard. In thie view of the mutter, ull the above four matters are adjourned sine die?” That, however, the Appeals of N.K. Proteins Limited and White Water Foods Private Limited were finally disposed of vide order dated 17.06.2015 tind while disposing of the same, the Hon‘ble High Court was pleased to allow the Appeal so filed by N. K. Proteins Limited theceby restraining this Hon'ble Committee to proceed against the said Appellant by observing that “..ave prima facie find that the appellant N. K. Proteins Limited who is not a defendant nos third party to the subject Suit shall not be made to appear before the Committee under the impugned orders passed:-by learned Single Judge...” Since few other Appeals filed by some of the ‘Thine Party-Noticees including, My LO. Group) are still pending for hearing and disposal before the Hon'ble Court, the order dated 28104.2015 of this Hon"ble Committee qua My Clients still stands oper:itional and, therefore, issuance of the subjectnotice is inconsistent and against the ordei Even otherwise, there is no change in the of this Hon'ble Committee itself. iecumistance or ay extraordinary compelling reason for amending / modifying / tccalling the said order of this Hon'ble Committee. My Clients, hawever, without prejudice, submit chat their Appeals are likely to be tiken up ia the coming week as T have instructions from My Clients thar the same be got listed before the Hon'ble Bench on the first available time either hy circulation or on production. In view of the foregoing facts, ci sumstances and submissions, it is most respectfully prayed dl till the adjudication af Appsals as well as the Suits filed by My Clients, this Hon‘ble Committce may be pleased t maintain the order dated 28.04.2015 and keep in abeya licnts, in the interest of justice. ce the present proceedings qua My ‘Yours sincerely, Govidd Solanke Advocatemum - ‘a’ 3 BEFORE THE COMMITTEE CONSTITUTED UNDER THE BOMBAY HIGH COURT ORDER DATED 2™ SEPTEMBER 2014 IN SUIT NO.173 OF 2014 AND OTHER RELATED SUITS COMPRISING JUSTICE V.C.DAGA (RETD.) CHAIRMAN, MR. J.8.SOLOMON {ADVOCATE AND SOLICITOR-MEMBER) AND MR. YOGESH THAR {CHARTERED ACCOUNTANT MEMBER) MODERN INDIA LIMITED & ORS .-PLAINTIFFS VS. FINANCIAL TECHNOLOGIES (INDIA) LTD. AND OTHERS .DEFENDANTS APPEARANCES: Mr. Amect Naik a/w Dr. Birendra Saraf, Ms, Anuja Jhunjhunwala, Ms. Priya Khaitan, Mr. Jaideep Singh Khattar and Mr. Rohit Mangalsule, Advocates i/b M/s. Naik Naik and Co. for NSEL Mr. Ramchandra Maruti Shintre, Mr. Utkarsha V. Bhingarde, Mr. Gagan Preet, Mr. Neeraj Sharma and Hemlata M. Employees of NSEL Mr. Mayur Khandeparkar with Mr. Gandhar Raikar for Mr. Achal Agarwal. Mr, Sumit Patni, Advocate i/b Mr. Govind B. Solanke for LOIL Group. Mr. Arvind N. Wadhavkar, Sr. P.l. and Mr. Prasad Satam, P.l. for EOW Mr. Bhushan Shah, Mr. Piyush and Ms. Nivedita Atre for M/s. Mansukhlal Hiralal and Co. Mr. Mihir Gheewala, Mr. Ishan Jani with Ms. Mousami, Advocate for M/s. Geofin Comtrade Ltd, Mr. Chirag Shah, with Mr. Biyal Mehta and Ms. Nidhi Shukla for NAARA14 Mr. Bharat Shah, Mr. Anil Sonthalia, Mr. Ketan Shah, Mr. H.G. Murara, Mr. Achat Agrawal and Mr. Hitesh Jain for investors. Mr. Ravi Warrier, Mr, Gautam Ankhad and Ms. Hiral Thakkar, i/b Federal and Rashmikant for Plaintiff in suit no. 173 of 2014 Mr. Sachin Deshpande and Mr. Bhagyesh Joshi, Advocate for M/s. Motilal Oswal Commodities Brokers Pvt. Ltd. Mr. Uday Tardaikar for ANMI/BBI/CRAL Mr. IV. Suryavanshi, Advocate i/b Thodur Law Associates for M/s. Swastik Overseas Corporation. ORDER SHEET NO. 36A {Dated 24' August, 2015) 1 Mr. Sumit Patni, Advocate i/b Mr. Govind B. Solanke, ‘Advocate appears and produced the letter dated 24% August, 2015 addressed by Mr. Govind B. Solanke, Advocate to the Committee and again requests for adjournment. ‘The said letter is taken on record. Prayer made by Mr. Patni, Advocate stands rejected. 2 In spite of service of repeated notices, nobody is appearing for LOIL Foods Pvt. Ltd., LOIL Overseas Foods Ltd. and LOIL Continental Foods Ltd. LOIL group claimed that they have filed an appeal before Hon'ble High Court and the same is pending, however, no steps have been takes by them for the last past six months to get the appeal fixed for hearing. In the circumstances Committee feels it necessary to request the Hon'ble High Court to issue directions toly directions issued LOIL Group to appear before the committee comp! by the committee and produce accounts and documents as may be required by the committee. @ JUSTICE V, (RETD.) i oo re => é MR. J.S.SOLOMON MR. YOGESH THAR ADVOCATE AND SOLICITOR CHARTERED ACCOUNTANT MEMBERS| IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL, JURISDICTION REPORT NO, 14 OF 2015, IN ‘SUIT NO.173 OF 2014 WITH TP No 2 OF 2014 TO TP No 15 OF 2014 Modern India Limited & Ors. Plaintiffs vs Financial Technologies () Ltd. & Ors, Defendants il WITH Other Related Suits REPORT Dated this "dy of September, 2015 Justice V. C. Daga (Retd.) - Chairman Mr. J. $:Solomon. and ‘Mr. Yogesh Thar Members ‘ 1 Floor, Committee Room (Aster), World Trade Centre-1, Cuff Parade, Mumbai - 400005, 13