11th Dec 17: Ten issues addressed in FTIL-NSEL merger case

Last week, the Bombay High Court passed a landmark judgment. It dismissed the petition challenging a central government move to merge the payment crisis-hit National Spot Exchange (NSEL) with its parent entity, earlier named Financial Technologies (FTIL) and since renamed 63 Moons’ Technologies.

Initially, the 2014 draft order under Section 396 of the Companies Act was stayed. Then, it was lifted, allowing the final order in February 2016. Operation of this order was kept in abeyance, pending the Bombay HC decision. This decision itself will not operate for another 12 weeks, allowing the petitioners — 63 Moons and others — to move the Supreme Court.

In a case that saw senior advocates such as Harish Salve (FTIL), Darius Khambatta (government) and Iqbal Chagla (Securities and Exchange Board of India or Sebi) put forth arguments and counters, the court examined 10 key questions. In the 222-page order, the bench of Chief Justice Manjula Chellur and M S Sonak discussed each of these before arriving at the decision that there was no need to interfere with the government decision.

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