Bombay High Court Dismisses 63 Moons’ Plea Challenging Merger With NSEL
The Bombay High Court today cleared the way for the merger of National Spot Exchange Ltd. with its parent Financial Technologies Ltd. (now called 63 Moons Technologies Ltd.)
While dismissing Financial Technologies’ plea opposing the merger, the court gave the company 12 weeks to file an appeal before the Supreme Court, before which the companies cannot be merged.
Shortly after the high court pronounced its order, the company said that it would move the apex court in the 12-week window.
We have full faith in the judiciary and continue to believe that ultimately the truth and justice shall prevail.63 Moons Technologies Statement
In February 2016, the Ministry of Corporate Affairs had directed NSEL’s merger with FTIL on the grounds of public interest. The ministry had stated that merging the two companies would combine their assets and capital and could allow the "satisfactory settlement of rights and liabilities of stakeholders and creditors of NSEL." FTIL had contested this order before the Bombay High Court arguing that the merger violates the concept of limited liability and permits piercing of the corporate veil.
The NSEL, promoted by Financial Technologies, was ordered to stop trading after a probe found that it allowed trading against stock that didn’t exist in warehouses. NSEL had failed to settle Rs 5,600 crore worth of investor dues.