NCLAT allows stake sale in 63 moons arm
The government has appealed to the NCLAT to supersede the board of directors of the company.
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.