NCLAT Rejects MMTC's Challenge to NSEL Settlement Scheme
The NCLAT dismissed MMTC’s appeal against a Rs 1,950-crore settlement between NSEL and traders, upholding the resolution of the NSEL crisis.Summary
The National Company Law Appellate Tribunal (NCLAT) has rejected MMTC’s challenge to the Rs 1,950-crore settlement between National Spot Exchange Ltd (NSEL) and its traders. This decision reinforces the resolution of the long-standing NSEL crisis, a situation that began in July 2013 when the Department of Consumer Affairs directed NSEL to close all contracts, leading to a payments crisis exceeding Rs 5,400 crore. MMTC argued the scheme was “prejudicial to the public interest” and “vitiated by fraud,” but NCLAT found these claims to be, at best, “an incorrect finding,” not actual fraud. The settlement scheme had already been approved by the NCLT, affirmed by the Supreme Court, and supported by over 90% of creditors, with no objections raised by relevant authorities like the ED, EOW, or MPID. Traders participating in the settlement agreed to withdraw all legal cases against NSEL and 63 Moons.
(Source：Rediff)