HC passes interm order on petition by FTIL

The Madras High Court today passed an interim order on a petition by Financial Technologies (I) Limited, Chennai, to set aside the June 30, 2015 order of the Company Law Board not to sell, alienate or create third party rights in the company's assets till further orders.
"The suspension of CLB orders only with respect to the investments and injunction will continue with respect to immovable properties," Justice Pushpa Sathyanarayanan, before whom the petition by FTIL came up, said.
The CLB had in its order directed FTIL mot to sell/ alienate or create third party rights in the assets and investments of FTIL company till further orders.

FTIL had then moved the Court against the order.
FTIL contended that CLB passed the order without giving them an opportunity to file a reply and would virtually bring its business to a standstill, besides affecting more than 1000 employees, 63,000 public shareholders and all other stake- holders. It was passed without considering the objection raised on maintainability of its petition.
FTIL alleged that CLB should have returned the company petition filed against it as defective as it was signed by a person who has no authority. No particulars or details of the alleged acts of oppression or mismanagement had been placed, it said.

The company petition filed before CLB was founded an allegation of mismanagement in relation to the affairs of National Spot Exchange limited, Mumbai, which is its subsidiary.

CLB had on July 1 barred the scam-ridden Financial Technologies India (FTIL) from selling its assets till September 2.
The court, which was hearing the government's petition to supersede the FTIL Board, said there would be status quo on the sale of property and assets.
The Corporate Affairs Ministry had moved the Board seeking removal and supersession of the FTIL Board under Section 397 of Companies Act, 1956.
In its petition, government also wanted that Jignesh Shah-promoted FTIL be restrained from disposing of its assets on the ground that it would defeat the purpose of the merger with National Spot Exchange Ltd (NSEL).