Delhi HC seeks response from SEBI, others on plea challenging negative pricing of crude contracts
Apr 30, 2020
New Delhi [India], April 30 : Delhi High Court has refused to grant interim relief on a petition challenging the settlement of crude oil contracts at negative prices and issued notices to SEBI and other respondents seeking their response on the matter.
A bench of Justice C Hari Shankar on Monday issued notice to Securities and Exchange Board of India (SEBI) and others on a petition filed by Akshay Aluminium Alloys LLP and listed the matter for further hearing on June 24.
"Keeping in mind the multifarious objections raised by the respondents, which would require to be answered by the petitioner, as also because the writ petition has failed to disclose any provisions, statutory, or otherwise, which the impugned Circular allegedly infracts, and, additionally, bearing in mind the fact that the dispute essentially involves the rate at which the transactions are to be effected, and is, essentially, therefore, in the nature of a contractual financial dispute, I am not inclined to grant any interim relief in this matter," the court said.
The petitioner had approached the court after being aggrieved by a circular dated April 21, issued by MCX Clearing Corporation Limited, which fixes the due date rate of crude oil futures contract, which have expired on April 20, at minus 2,884 rupees per barrel.
Counsel for the petitioner said that they have advanced various submissions to impugn the circular, which primarily hinges on the practical hardship that his client is facing as a consequence of the circular.
Senior counsel Arvind Datar, appearing for SEBI, told the court that various preliminary submissions, including certain serious preliminary objections which, in his submission, would merit outright dismissal of this writ petition.
Datar submitted that the whose action the petitioner claims to be aggrieved of is situated in Mumbai and added that various other persons, who are also aggrieved by the impugned decision, have, moved the Bombay High Court.
