₹84 Crore Released to NSEL Settlement Account: Bombay HC Quashes 2015 Proceedings Against 63 Moons [Read Order]

The Bombay High Court has authorized the transfer of ₹84 crore, along with accrued interest, from a court deposit to a Settlement Account established under a Scheme of Arrangement approved by the National Company Law Tribunal (NCLT) in Mumbai. This decision accompanied the quashing of criminal proceedings initiated in 2015. The original petition was filed by Financial Technologies (India) Limited, now 63 Moons Technologies Limited, challenging a notice from State authorities related to the National Spot Exchange Limited (NSEL). The funds were initially deposited with the High Court Registry in 2015 following interim orders. The NCLT subsequently approved a Scheme of Arrangement between NSEL and its creditors, with support from the Economic Offences Wing and the Maharashtra Protection of Interest of Depositors Act authorities, despite some reservations. The High Court, recognizing that the NCLT had considered pending legal proceedings when approving the scheme, determined that transferring the funds would facilitate the scheme’s implementation and address creditor grievances. Consequently, the Court quashed the 2015 notice and directed the Registry to transfer the deposited amount to the Settlement Account, disposing of the writ petition and related applications.

(Source：Taxscan)