HEADLINES:
October 19 2019
Supreme Court dismisses petition against 63 Moons
31 January 2019

HC order staying attachment of assets was challenged

The Supreme Court has dismissed the special leave petitions of NSEL Investor Action Group (NIAG) and the Maharashtra government, while declining to interfere with the Bombay High Court order staying the attachment of assets of 63 Moons Technologies under the Maharashtra Protection of Interest of Depositors (MPID) Act.

Second-time dismissal

This is the second time the Supreme Court has disposed the petition of the NIAG, which had earlier sought a similar stay on the high court order against Jignesh Shah, the founder of 63 Moons, formerly known as Financial Technologies India Ltd. “We are not inclined to interfere in these matters as the order impugned is an interim order. The Special Leave Petitions are accordingly, dismissed,” stated the Supreme Court order passed on Monday.

On October 24, 2018, the Bombay High Court had passed an interim order staying the attachment of the company’s assets, including bank accounts and properties, under the MPID Act.

The attachment of the assets of 63 Moons was done through the notifications issued by the Maharashtra government in April 2018 under provisions of the MPID Act. Incidentally, the high court had termed the State’s action prima facie excess, arbitrary and unreasonable. This order was challenged by the Maharashtra government and the NIAG in the Supreme Court.

The apex court has said that considering the “importance of the matter” it would request the high court to hear the matter in February. This was after senior advocate Mukul Rohatgi, appearing on behalf of 63 Moons, said that the Bombay high court is “likely” to hear the matter in February.

 

 

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