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Bajoria petition dismissed by High Court

The Calcutta High Court, Tuesday, dismissed a petition filed by Arun Bajoria challenging the Securities and Exchange Board of India's (Sebi) jurisdiction to conduct hearing on his acquisition of Bombay Dyeing shares.

Single Bench judge, Justice Barin Ghosh in his order said the petition did not have any merit and was taken out to delay the process of investigation by Sebi.

Incidentally, Bombay Dyeing and Industries Limited had approached the Sebi alleging that Bajoria had violated acquisition norms when he acquired over 14 per cent of company's shares, without informing it when he crossed the mandatory 5 per cent limit.

The company had also approached the Company Law Board (CLB) which had frozen the voting rights of shares acquired by Bajoria after it was prima facie convinced about Bombay Dyeing's complaints and the investigation was still going on.

Based on Bombay Dyeing complaints, SEBI had conducted its own investigation and had asked both Bajoria and the company to appear before it on February eight last.

Bajoria had moved the High Court just before the scheduled hearing with a writ petition challenging SEBI's jurisdiction at a time when CLB was conducting a separate inquiry.

The court had asked SEBI to postpone Bajoria's hearing and after extensive hearing of the arguments of Bombay Dyeing and SEBI counsels on March 12, had reserved its judgement, which was pronounced on Tuesday.

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