63 moons wins: NCLAT dismisses MCA’s plea to supersede 63 moons Board under Sec. 397 of Companies Act, 1956

The National Company Law Appellate Tribunal (NCLAT) dismissed the plea of the Ministry of Corporate Affairs (MCA) to supersede the Board of 63 Moons Technologies Limited (formerly known as FTIL) under Section 397 of the Companies Act, 1956. NCLAT has completely exonerated the present Board of 63 Moons of all the allegations of oppression and mismanagement.

Currently, the Board of 63 Moons comprises of 4 former Secretaries IAS (Retd.), 1 former Supreme Court Judge, 1 former Bombay High Court Judge, 1 CA, 1 IIM-A Alumni, 1 noted Economist and 2 former Senior Bankers.

The company had been dragged to the National Company Law Tribunal (NCLT) in relation to Rs. 5,600 crore National Spot Exchange (NSEL) payment default case. In June 2018, the NCLT had barred Jignesh Shah and nine others from holding Directorship in 63 Moons as well as any other company. The NCLT had allowed the government to nominate three directors on the board of 63 Moons.

According to a Press Release issued by 63 Moons, Mr. S. Rajendran, MD & CEO said, “We are extremely happy to note that NCLAT has rejected MCA’s prayer to supersede the Board of 63 moons in connection with the payment default crisis that occurred at one of our subsidiaries, National Spot Exchange Ltd (NSEL) in 2013. The order has also given a clean chit to the current Board of 63 moons of any alleged misconduct or wrongdoing against the interest of its shareholders.”

Mr. Rajendran further added in the Press Release that, “The operational part of judgement is being examined and all necessary steps will be taken as per the legal advice. We are very sure that ultimately truth shall prevail & justice will be done.”