Bombay HC to rule on NSEL merger matter on Monday

A bench headed by Chief Justice of Bombay High Court Dr Manjula Chellur will rule on the government's final order to merge National Spot Exchange Ltd ( NSEL) with its parent 63 Moons in public interest on Monday.

The merger order, passed in Feb 2016 after a Rs 5,600 crore payment default rocked NSEL in July 2013, was challenged by 63 Moons for allegedly vitiating the limited liability concept.

63 Moons holds 99.9 per cent of NSEL's equity. The order was passed under Sec 396 of the Companies Act, 1956.

The judgement is keenly awaited by not just thousands of affected investors on NSEL and 63 Moons but by legal eagles too as it will decide on whether the government can operate the merger order, the first in respect of two private companies.

63 Moons closed up almost 3 per cent Friday at Rs 138.10.