1

Non-reportable

IN THE SUPREME COURT OF INDIA  CIVIL APPELLATE JURISDICTION  

Civil Appeal  No(s). 5395-5398/2019

SECURITIES AND EXCHANGE BOARD OF INDIA             APPELLANT(S)

                               VERSUS

IL AND FS SECURITIES SERVICES LTD. & ORS.          RESPONDENT(S)

WITH C.A.  No.  6241-6244/2019,  Diary  No(s).  27426/2019,Diary  No(s). 27604/2019 &   Diary No(s). 27624/2019.  

O R D E R  

Permission to file appeal is granted.  

We have heard learned counsel for the parties and in view of

the urgency and consequences explained, we are inclined to pass the

following interim directions:  

1. The National Security Clearing Corporation Limited will honour

F & O Segment contract which had matured on 27th June, 2019 and has

not been paid in view of the interim order passed by this Court on

26th June, 2019 in I.A. No. 91268/2019 in Civil Appeal No. 5104-

5105/2019.   The  interim  order  is  vacated,  clarifying  that  the

payments would be without prejudice to the rights and contentions

of all the parties and subject to the final outcome and directions

that this Court would pass.

2. Option is given to Novjoy Emporium Private Limited, OCL India

2

Limited and Dalmia Cement East Limited to ask for conversion/sale/

encashment of the mutual funds which were purportedly furnished as

a security by Allied Financial Services Private Limited. Similar

option is also given to 44 parties who had preferred Appeal No.

257/2019 before the Securities Appellate Tribunal, Mumbai.

3. On the option being exercised, IL & FS Securities Services

Limited  shall  convert/encash  the  mutual  funds,  and  the  amount

realised would be deposited in a fixed deposit in a Nationalised

Bank for a period of six months to earn maximum interest. The

deposit would be in the name of IL & FS Securities Services Limited

and abide by further orders/directions of this Court.

4. The question of jurisdiction of Securities and Exchange Board

of India, Securities Appellate Tribunal and the plea of IL & FS

Securities Services Limited relying upon clause(5) of Chapter VII

of  the  Bye-Laws  framed  by  the  National  Security  Clearing

Corporation Limited are left open and would be decided at the time

of final hearing.  

List the matters after four weeks.  

   ......................J.       [MOHAN M. SHANTANAGOUDAR]

 ......................J.            [SANJIV KHANNA]

NEW DELHI; AUGUST 27, 2019.