The Madras High Court has given three more months time for the Company Law Board (CLB) to complete hearing in the matter on supersession of the Board of Financial Technologies (India) Ltd (FTIL).
CLB will now have time until March 11 next year to complete hearing on the matter, sources close to the development said.
The Madras High Court had earlier required the CLB to complete hearing in the FTIL case by December 11.
The latest High Court move allowing three more months for completion of the hearing follows both Government and FTIL seeking more time on the matter.
It may be recalled that the CLB had on December 7 adjourned to January 13 next year hearing on the MCA’s petition to supersede the Board of FTIL.
The Corporate Affairs Ministry (MCA) had on February 25 this year moved the CLB to supersede the FTIL Board.
FTIL had opposed the MCA's petition to CLB to supersede its Board.
In the second week of July, the Madras High Court had put a stay on the CLB's June 30 order barring FTIL from selling or alienating the assets or investments of the Company.
FTIL’s OPPOSITION
FTIL contended that the MCA petition to supersede the entire new Board of the company was clearly an attempt to ensure that there was no opposition whatsoever from the new Board to the forced amalgamation of NSEL with FTIL.
The Government is targeting to render FTIL's challenge to the forced merger of NSEL under Section 396 nugatory by removing the entire new board, which assumed responsibility in November 2014, according to FTIL.