The National Company Law Appellate Tribunal on Thursday set aside the government's plea to supersede the board of 63 Moons Technologies (formerly known as Financial Technologies (India) Limited).
An NCLAT bench headed by Chairperson Justice S J Mukhopadhaya, however, upheld the directions of the Chennai bench of the National Company Law Tribunal (NCLT) to appoint three government nominees on the board of 63 Moons.
The appellate tribunal also dismissed the plea of the company's three directors, which include Jignesh Shah and Divang Narela, challenging their disqualification.
"The directors (including govt nominees) would remain on the board," the NCLAT said.
Earlier, on June 2018, the NCLT had set aside the Centre's plea to supersede 63 Moons.
The NCLT has, instead, allowed the government to nominate three directors to the board of 63 Moons Technologies to take care of the interest of all stakeholders as well as protect the company's investments in its subsidiaries.
It had also barred Jignesh Shah and nine others from holding directorship in 63 Moons.
The government had moved to the NCLT to take over the board of the company under section 397 and 398 of the Companies Act after Rs 5,600-crore NSEL scam came out. NSEL is a subsidiary of 63 Moons.
Commenting on the development, 63 Moons MD & CEO S Rajendran said, "We are extremely happy to note that the NCLAT has rejected MCA's prayer to supersede the board of 63 Moons in connection with the payment default crisis that occurred at one of our subsidiaries, National Spot Exchange Ltd (NSEL) in 2013.
"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," he added.
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