The Company Law Board (CLB) on Wednesday set the next hearing in the Financial Technologies’ Board supersession matter for January 29, while allowing all parties concerned to file their responses and re-joinders to the matter.
This was the first occasion that the CLB heard the FTIL Board removal matter post the Madras High Court giving this quasi-judicial body three months time to complete hearing by March 11 this year.
In December 2015, the Madras High Court had set March 11 deadline (three months window) to complete hearing on the matter. The CLB was earlier required to complete hearing in the FTIL case by December 11.
It may be recalled that the CLB had on December 7 last year adjourned to January 13 hearing on the MCA’s petition to supersede the Board of FTIL.
The Corporate Affairs Ministry (MCA) had on February 25 last year moved the CLB to supersede the FTIL Board.
FTIL had opposed the MCA's petition to CLB to supersede its Board.
In the second week of July, the Madras High Court had put a stay on the CLB's June 30 order barring FTIL from selling or alienating the assets or investments of the Company.
FTIL’s opposition
FTIL contended that the MCA petition to supersede the entire new Board of the company was clearly an attempt to ensure that there was no opposition whatsoever from the new Board to the forced amalgamation of NSEL with FTIL.
The Government is targeting to render FTIL's challenge to the forced merger of NSEL under Section 396 nugatory by removing the entire new board, which assumed responsibility in November 2014, according to FTIL.
Srivats.kr@thehindu.co.in