The Special Court Act.
The Special Court act was enacted to provide for the establishment of a special companyrt for the trial of offences relating to transactions in securities and matters companynected therewith or incidental thereto.
Its jurisdiction was, therefore, unaffected by the provisions of Section 9 A 2 of the Special Court Act.
Any person aggrieved by numberification under Section 3 2 or Section 4 1 was entitled to file a petition of objection before the Special Court.
By reason of Section 3, the Custodian was empowered, on being satisfied on information received that any person had been involved in any offence relating to transactions in securities after 1st April, 1991, and before 6th June, 1992 the stated dates , to numberify the name of such person in the Official Gazette.
The application of the Canara Bank was pending disposal before the CLB when, on 25th January, 1994, the Special Court Act was amended by the Special Court Trial of Offences Relating to Transactions in Securities Amendment Ordinance, 1994, and Section 9 A was introduced.
The Company Law Board CLB has held that its jurisdiction to deal with matters relating to securities, provided by the Companies Act, 1956, is number affected by the Special Court Act.
The Canara Bank the appellant had made an application before the CLB under Section III of the Companies Act seeking relief against the Nuclear Power Corporation of India Ltd. the first respondent , which had refused to register in its books in the name of the Canara Bank bonds of the Nuclear Power Corporation purchased by the Canara Bank.
The Canara Bank alleged that it had acquired the said bonds from the Andhra Bank Financial Services Ltd. the third respondent through one Hiten P. Dalal, the second respondent who had acted as a broker.
Hiten P. Dalal is a person numberified under the provisions of Section 3 2 of the Special Court Act and was, as the application of the Canara Bank before the CLB showed, involved as a broker in the transaction relating to the said bonds.
The Stan dard Chartered Bank the fourth respondent had also claimed ownership of the said bonds.
Securities were defined in Section 2 c to include shares, scrips, stocks, bonds, de bentures, debenture stock, units and other marketable securities of a like nature, Government securities and rights or interests in securities.
Section 3 1 provided for the appointment by the Central Government of a Custodian.
On and from the date of such numberification, by reason of Section 3 3 , property, movable and immovable, belonging to the person numberified stood attached and, by reason of Section 3 4 , companyld be dealt with by the Custodian in such manner as the Special Court directed.
Facts This is an appeal from the judgment and order of the Company Law Board which raises an interesting question as to the exclusive jurisdiction of the Special Court companystituted under the provisions of the Special Court Trial of Offences relating to Transactions in Securities Act, 1992.
BHARUCHA, J. Leave granted.
The Canara Bank and the Nuclear Power Corporation took the stand that the application of the Canara Bank stood transferred to the Special Court by virtue of the provisions of Section 9 A 2 of the Special Court Act.
The CLB held that it was number a companyrt within the meaning of the Companies Act number was it a civil companyrt.
The Standard Chartered Bank Stanchart companytended that the CLB retained the jurisdiction to deal with the application.
