Supreme Court sets aside merger of 63 Moon Technologies with NSEL

The Supreme Court said that the govt order on amalgamation of two companies was not necessarily in public interest as claimed

The Supreme Court on Tue­sday set aside the Centre’s decision to merge National Spot Exch­nge (NSEL) with Financial Techn­ologies India (FTIL), now known as 63 Moon Tech­nologies, as it was against Section 396 of the Com­p­anies Act. Section 396 of the Companies Act deals with co­m­­pulsory amalgamation of firms ordered by the cen­tr­al government in public interest. 

A two-judge Bench of Justice Rohinton Fali Nariman and Justice Vineet Saran set aside a Bombay High Court judgment that had upheld the Centre’s order on amalgamating the two companies. The Centre had, in 2016, decided to issue a final order for the merger.