Financial technology firm 63 moons, formerly known as FTIL on Saturday said that National Company Law Tribunal (NCLT), Chennai, has dismissed the plea of the Ministry of Corporate Affairs (MCA) to supersede its Board.
According to the firm, NCLT has exonerated the present Board of 63 moons of "all the baseless allegations of oppression and mismanagement".
Welcoming the NCLT order, 63 moons Managing Director and CEO S. Rajendran said: "We are extremely happy to note that NCLT has rejected MCA's prayer to supersede the Board of 63 moons in connection with the payment defaults that occurred at one of our subsidiaries, National Spot Exchange Ltd (NSEL) in 2013."
"This judicial order in fact confirms the opinion given by Law Ministry way back in June 2014 to MCA, of non-applicability of Section 397 and many such sections on FTIL. 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 its shareholders."
However, the company said that it will go for a review of certain aspects of the order.
"We are completely shocked and astonished to note that the NCLT order has applied Section 388B and such sections against some of the past directors who were not even on Board of NSEL i.e. Manjay Shah and Dewang Neralla and strangely in case of Jignesh Shah, Section 388B is applied on the basis of material beyond the original petition filed by MCA in 2015," said Rajendran.
"Shockingly, out of the three directors of FTIL, only Jignesh Shah was on Board of NSEL and no Section 397 proceedings are initiated against NSEL nor any Section 388B is upheld against any other directors of NSEL including other directors of FTIL who were also on NSEL Board. This complete contradiction is one of the many unexplained and unsubstantiated inconsistencies in the Order".
--IANS
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