63 moons: NCLAT dismisses Centre’s plea to supersede board

KR Srivats New Delhi | Updated on March 12, 2020

Upholds NCLT order disqualifying Jignesh Shah, Dewang Neralla and Manjay Shah as directors

The National Company Law Appellate Tribunal (NCLAT) has dismissed the Centre’s plea for superseding the board of 63 moons technologies limited (formerly FTIL) under Section 397 of Companies Act, 1956, in the NSEL scam matter.

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 NCLAT has now also upheld the NCLT-Chennai order that disqualified Jignesh Shah, Dewang Neralla and Manjay Shah as directors. The latest decision would mean the three disqualified directors (under Section 388B) cannot serve on the board of any other company as well.

With the NCLAT decision announced by Chairman SJ Mukhopadhaya here on Thursday, the Centre can go ahead and nominate three directors to the 63 moons board.

“We are extremely happy to note that NCLAT has rejected MCA’s (Ministry of Company Affairs) prayer to supersede the board of 63 moons in connection with the payment default crisis that occurred at one of our subsidiaries, the National Spot Exchange Ltd, in 2013,” said S Rajendran, MD and CEO of 63 moons.

“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 shareholders,” he added.

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

Published on March 12, 2020

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