NCLAT stays NCLT order on appointment of government nominated directors to 63 Moons
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NCLAT stays NCLT order on appointment of government nominated directors to 63 Moons

Varun Chirumamilla

A bench of the National Company Law Appellate Tribunal (NCLAT) comprising the chairman Justice SJ Mukhopadhaya and member (Judicial) Justice AIS Cheema, has stayed an order of the Chennai Bench of the National Company Law Tribunal (NCLT), which allowed the government to appoint three directors to the board of 63 Moons Technologies Ltd.

The order was passed on June 4, 2018.

The Chennai bench had declined to grant permission to the government to supersede the board of 63 Moons (formerly Financial Technologies Limited), but allowed them to nominate a maximum of three directors.

They also held that chairman emeritus Jignesh Shah who is an accused in the National Spot Exchange Limited (NSEL) scam, in which it is alleged that investors were defrauded of over 5,500 crores and nine others were unfit to be directors on the board of 63 Moons.

63 Moons holds over 99 percent stake in NSEL.

Today’s NCLAT order has stayed the entire operation of the  June, 4 order, according to a 63 Moons statement.

The statement also said that a committee appointed by the Delhi Bench of the NCLT in 2016, to oversee treasury operations of the company, will continue to do so in the interim.

Both the Government and 63 Moons had moved the NCLAT against the June, 4, order, and the matter will next be heard on July 3, 2018.

Read the statement

63-moons-statement-on-NCLAT-stay_27062018-watermark.pdf
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