New Delhi: The National Company Law Appellate Tribunal (NCLAT), on Thursday dismissed a 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.
The NCLAT has completely exonerated the present Board of 63 moons of all the baseless allegations of oppression and mismanagement, the company stated after the judgement was pronounced.
However, like the Chennai Bench of NCLT order, the NCLAT also allowed the government to nominate three directors to take care of the interest of all stakeholders and protect the interest of the investment of 63 moons technologies in its subsidiaries.
At present, the 63 moons Board comprises of four former Secretaries IAS (Retd.), one former Supreme Court Judge, one former Bombay High Court Judge, one Chartered Accountant, one IIM-A Alumni, one noted economist and two former Senior Bankers.
"We are extremely happy to note that the 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," said S. Rajendran, MD & CEO, 63 moons technologies.
Rajendran expressed shock and surprise at the NCLAT upholding the NCLT Chennai's order on Section 388B and such sections against some of the past directors of 63 moons who were not even on the Board of NSEL i.e. Manjay Shah and Dewang Neralla. And also in the case of Jignesh Shah, Section 388B was applied on the basis of material beyond the original petition filed by MCA in 2015.
Out of the three directors of 63 moons, only Jignesh Shah was on Board of NSEL and no Section 397 proceedings are initiated against NSEL nor any Section 388B is upheld against any other directors of NSEL including other directors of 63 moons who were also on NSEL Board.
This complete contradiction is one of the many unexplained and unsubstantiated inconsistencies in the Order.
The Rs 5,600 crore NSEL payment crisis, which is a force majeure engineered accident, actually happened because of a well-crafted political conspiracy during UPA-II era.
It is nothing but continued targeting of Jignesh Shah which started in the earlier UPA Govt. by a powerful minister and his network of loyal bureaucrats, who failed in their duty and misled the government for many such industry negative actions, according to the statement.
Rajendran said: "The operational part of judgement is being examined
and all necessary steps will be taken as per the legal advice. We are examining all legal options and we are very sure that ultimately truth shall prevail and justice will be done."