The National Company Law Appellate Tribunal (NCLAT) has stayed the order of the Chennai bench of NCLT in the 63 moons technologies (formerly Financial Technologies India Ltd) matter. The Appellate Tribunal will next hear the matter on July 3. Both the Central Government and 63 moons had approached the NCLAT against the NCLT order and requested a stay, it is learnt.
With the latest NCLAT stay, no Government nominee can be appointed as a director on the board of 63 moons. There is also a stay on the disqualification of certain past directors of 63 moons. Meanwhile, as an interim arrangement, the committee appointed by NCLT in June 2016 has been restored in the wake of the latest stay. This panel will now look into matters such as funding of subsidiaries and management of treasury operations.
It may be recalled that the Chennai NCLT bench had, through its June 4 order, dismissed the Centre’s plea to take over the board of 63 moons technologies. However, the NCLT had allowed the Government to nominate a maximum of three directors.
63 moons' reaction
“Following the NCLT order delivered on June 4, 2018, both the Union of India and the Company approached the National Company Law Appellate Tribunal (NCLAT). Consequently, the NCLAT today stayed the NCLT order of appointing three directors on the 63 moons board. It has also stayed the entire operation of the NCLT order, which had disqualified the previous directors as ‘not fit and proper’", a spokesperson for 63 moons said.
Simultaneously and purely as an interim arrangement, the Committee appointed by NCLT on June 2016 will only look into matters pertaining to funding of subsidiaries and management of treasury operations of the company, the spokesperson added.