NCLAT stays NCLT's order over 63 Moons Technologies

The National Company Law Appellate Tribunal today stayed the order of NCLT, which had rejected the government's plea to supersede the board of 63 Moons Technologies (formerly Financial Technologies).

A two member bench headed by Chairman Justice S J Mukhopadhaya stayed the order passed by the Chennai bench of the National Company Law Tribunal (NCLT) and directed to list the matter on July 3 for next hearing.

The appellate tribunal has said that the arrangement prior to the order will continue.

As interim arrangement, the committee appointed by NCLT in June 2016 has been restored, which would take care of important functions.

NCLAT's direction came over a petition filed by the Ministry of Corporate Affairs against the order passed by NCLT, which declined the government's plea to supersede the board of 63 Moons Technologies.

The NCLT has, instead, allowed the government to nominate three directors to the board of 63 Moons Technologies to take care of the interest of all stakeholders as well as protect the company's investments in its subsidiaries.

It had also barred Jignesh Shah and nine others from holding directorship in 63 Moon Technologies.

The government had moved to NCLT to take over the board of the company under section 397 and 398 of the Companies Act after Rs 5,600-crore NSEL scam came out. NSEL is a subsidiary of 63 moons technologies.

Commenting on the development, 63 moons technologies said that following the NCLT order both the Centre and the company approached the NCLAT.

"Consequently, the NCLAT today stayed the NCLT order of appointing three directors on 63 moons board. It has also stayed the entire operation of NCLT order which had disqualified the previous directors as 'not fit and proper'," the company said in a statement.

"Simultaneously and purely as an interim arrangement, the Committee appointed by NCLT on June 2016 is continued only to look into the matters pertaining to funding of subsidiaries and management of treasury operations of the Company," it further added.