NSEL has also obtained order injuncting the following defaulters, interalia, from disposing or dealing with certain assets set out in the respective Third Party Notices (TPN) proceedings / other proceedings initiated by NSEL in the Hon’ble Bombay High Court.

1. SUMMARY OF NSEL’S LEGAL EFFORTS

2. PROSPECTS
• Overview of NSEL Crisis
• 2nd September, 2014 Order States
• Committee Directions
• Defaulter Challenging Bombay HC Order
• Third Party Notices
• Section 138 of Negotiable Instruments Act, 1881
• Closure

3. Overview of NSEL Crisis
• The NSEL Crisis came to light more than a year ago when the present
Defaulters of the Exchange failed to honour their pay-in obligations and Trading
Members who traded on behalf of their clients could not receive their dues.
• The Bombay High Court has set up a special Committee to dispose off these
assets and repay monies owed.
• In the representative suit namely Suit No. 173 of 2014, the Honorable Bombay
Court vide its order dated 2nd September, 2014 has constituted a Committee of
the following persons:
1. Justice V. C. Daga [Chairman]
2. J. S. Solomon
3. Yogesh Thar,

4. 2nd September, 2014 Order States
“It is obvious that the Committee to be appointed by these Minutes of
Orders has a dual function to perform. In the first place, it is supposed
to conduct itself as a commissioner for investigating and examination of
accounts and render assistance to the Court in facilitating mutual
settlements between the parties. Once these settlements have been
arrived at and assets are collected in pursuance of these settlements, the
Committee in effect acts as receiver appointed by the Court in the
matter of preservation, custody and management of the assets so
collected.”

5. Committee Directions
• Pursuant to the aforesaid constitution of the Committee, several hearings have
taken place before the Hon’ble Committee appointed by the Hon’ble Court.
• The Hon’ble Committee has also passed several directions to the defaulters for
rendition of accounts, disclosures of their assets, including the personal assets
of its key managerial personnel.
• The Hon’ble Committee has also passed directions to the Competent Authority
under the Maharashtra Protection of Interest of Depositors ( In Financial
Establishments ) Act, 1999 as well as he Economic Offences Wing to appear
before the Hon’ble Committee.

6. Defaulter Challenging Bombay
HC Order
Sr.
No.
DEFAULTERS
Amount Of Decree
( In Crores )
1
Aastha Minmet India Pvt. Ltd. and
Ors.
Rs. 12.50 with interest
2
Juggernaut Projects Limited and
Ors.
Rs. 145 with interest
3 Swastik Overseas Corporation Rs. 91.19 with interest
4 Yathuri Associates Rs. 264.96 with interest
Certain defaulters have challenged the above order dated 2nd September, 2014
before the Hon’ble Bombay High Court and the said appeals are pending
adjudication. In addition to the above, NSEL has obtained decrees against
certain defaulters, particulars of which are as follows:

7. Third Party Notices
SR. NO. THIRD PARTY NOTICE NAME / DEFAULTER
1 Mohan India Pvt. Ltd.
2 Tavishi Enterprises Pvt. Ltd.
3 ARK Imports Pvt. Ltd.
4 Yathuri Associates
5 Swastik Overseas Corporation Ltd.
6 Vimladevi Agrotech Ltd.
3 Shree Radhey Trading Company
4 Namdhari Food International Pvt. Ltd.
9 Namdhari Rice and General Mills
10 PD Agro Processors Pvt. Ltd.
11 NCS Sugars Ltd.
NSEL has also obtained order injuncting the following defaulters, interalia, from
disposing or dealing with certain assets set out in the respective Third Party Notices
(TPN) proceedings / other proceedings initiated by NSEL in the Hon’ble Bombay High
Court.

8. Section 138 of Negotiable Instruments
Act, 1881
Apart from the above,
• NSEL has filed several proceedings under Section 138 of the Negotiable
Instruments Act, 1881 against the defaulters before different courts in
India.
• Similarly, proceedings are also pending before the specially constituted
court under the Maharashtra Protection of Interest of Depositors (In
Financial Establishments) Act, 1999.

9. CLOSURE
• The Hon’ble Committee has made several recommendations such as:
a) For appointment of court receiver with respect of assets.
b) Cancellation of bail of key managerial personnel of certain defaulters.
c) For sale of assets.

10. Source: Media Reports
&
Images For Representation Purpose Only
Thank You