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NCLAT allows stake sale in 63 moons arm

The government has appealed to the NCLAT to supersede the board of directors of the company.

, ET Bureau|
Updated: Jul 24, 2019, 10.23 AM IST
Even if a business has closed down and the auditors have resigned, the section doesn’t cease to have jurisdiction.
NEW DELHI: The National Company Law Appellate Tribunal (NCLAT) has permitted 63 moons technologies (formerly FTIL) to sell 55 per cent stake in a subsidiary company — Atom Technologies — to Japanese firm NTT Data for $9 million.

63 moons technologies is the parent firm of scam-hit National Spot Exchange Ltd (NSEL).

The bench, however, stated that the sale proceeds could not be used for operations of the parent company 63 moons without first taking the permission of a committee led by former top court judge GP Mathur.

“It is made clear that the sale proceeds cannot be utilised for any purpose without prior permission for the committee headed by retired Supreme Court judge GP Mathur,” said a two-member bench led by Justice SJ Mukhopadhaya.

The bench also said that the company could only use these funds for day-to-day operations if it has exhausted other company funds.

In a parallel matter, the government has appealed to the NCLAT to supersede the board of directors of the company.

The Chennai bench of the National Company Law Tribunal had rejected the government’s appeal to supersede the board of directors of the company after its subsidiary NSEL was hit by the ₹5,600-crore scam in 2013.
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