The Company Law Board (CLB) on Wednesday adjourned to September 8 hearing on the MCA’s petition to supersede the Board of Financial Technologies (India) Ltd.
The Madras High Court had in the second week of July put a stay on the CLB’s June 30 order barring FTIL from selling or alienating the assets and investments of the company.
Today was the first occasion that CLB took up the FTIL matter after the Madras High Court’s stay.
The next hearing of CLB will be on September 8. FTIL is also now looking to change its name to ’63 moons technologies Ltd’
The Corporate Affairs Ministry (MCA) had on February 25 moved the CLB to supersede the FTIL Board.
FTIL had opposed the Corporate Affairs Ministry's petition to CLB to supersede the Board.
The main contention of FTIL was that the MCA’s attempt to replace the entire new Board of FTIL was to ensure that there was no opposition whatsoever from FTIL to the proposed amalgamation (NSEL with FTIL).
In October last year, the MCA had issued a draft merger order under Section 396 (Companies Act 1956) for the amalgamation of NSEL with FTIL.
This draft merger order was seen as one of its kind, as this was the first instance involving two private sector companies.
FTIL had opposed this draft order and filed a writ petition before the Bombay High Court, challenging the constitutional validity of Section 396 and praying for the quashing of the draft merger order.