Mumbai, Mar 12 (UNI) The National Company Law Appellate Tribunal (NCLAT) on Thursday dismissed the plea of the Ministry of Corporate Affairs to supersede the Board of 63 Moons Technologies limited (formerly FTIL) under Section 397 of Companies Act, 1956, in the NSEL scam matter.



The NCLAT completely exonerated the present Board of 63 moons of all the baseless allegations of oppression and mismanagement.

It has gone with the June 2018 order of the Chennai Bench of the National Company Law Tribunal (NCLT) that dismissed the Centre's plea to supersede the board and directed that up to three directors be nominated by the Centre to the 63 moons board.

The present 63 moons Board comprises of four former Secretaries IAS (Retd.), former Supreme Court Judge, former Bombay High Court Judge, a CA, an IIM-A Alumni, a noted Economist and two former Senior Bankers.

Mr S Rajendran, MD & CEO, 63 moons 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 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, he said.

Mr Rajendran expressed shock and surprise at 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 ie Mr Manjay Shah and Mr Dewang Neralla.

And strangely in case of Mr Jignesh Shah, Section 388B was applied on the basis of material beyond the original petition filed by MCA in 2015.

Shockingly, out of the three directors of 63 moons, only Mr 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 NSEL payment crisis, which is a force majeure engineered accident, actually happened because of a well-crafted political conspiracy during UPA 2 era.

It is nothing but continued targeting of Mr Jignesh Shah which started in the earlier UPA Government 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 a statement here.

Mr Rajendran said, '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 and justice will be done.'

Both the Centre and 63 moons had separately approached NCLAT in appeals against the June 2018 NCLT order.

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