The Bombay High Court on Friday extended the deadline for the government to decide on the merger of Financial Technologies with its wholly-owned subsidiary National Spot Exchange to December 31.
Hearing a petition filed by the Ministry of Corporate Affairs seeking more time, Justices SC Dharmadhikari and BP Colabawalla said no further extension would be granted to the government for deciding on the merger.
Last October, the government had proposed to merge the two entities in public interest so that FTIL assumes liabilities of ₹5,600-crore settlement default in NSEL. The decision was challenged in the Court by FTIL. On August 7, the High Court directed the government to pass the final order by October 30.
Arguing on behalf of the government on Friday, Jay K Bhatia, Senior Counsel, said before taking a decision on the merger the Ministry needs enough time to go through the written submission running into 1,000 pages made by both NSEL and FTIL on October 16 and 19. The government plea was accepted and it was given time till December 31.
Incidentally, the Bombay High Court also rejected Financial Technologies plea to stay the proceedings at the Company Law Board on the Corporate Affairs Ministry’s move to supersede the Financial Technologies board.