No govt nominees on 63 Moons board: NCLAT

Mumbai: The National Company Law Appellate Tribunal (NCLAT) on Wednesday stayed an order of the National Company Law Tribunal (NCLT) in Chennai that had allowed up to three government nominees on the board of

63 Moons

Technologies (formerly

Financial Technologies India

). The

NCLT

order of June 9 had also upheld a government move to disqualify some of the directors of the company, which has also been stayed by the

NCLAT

.

The June NCLT order was in relation to a move by the corporate affairs ministry to supersede the board of 63 Moons under section 397 of the Companies Act, 1956. While NCLT had in its order quashed the

MCA

order of superseding the board, it had allowed government nominees on the board of 63 Moons.

The company had moved NCLAT, challenging the appointment of the government nominees to its board, which has now been stayed by NCLAT. The government had also moved the NCLAT to challenge the NCLT order.

The government had moved to supersede the board of 63 Moons after the Rs 5,600-crore NSEL scam came out in the open in August 2013. The government wanted to supersede the board because it believed that 63 Moons, of which NSEL was a subsidiary, was to be blamed for the mess at the spot exchange. NCLAT allowed the committee appointed by NCLT in June 2016 to continue to look into the matters pertaining to funding of subsidiaries and management of treasury operations of 63 Moons.


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