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Informist, Tuesday, Mar. 10, 2026

 

NEW DELHI – Rejecting pleas by L.J. Tanna Enterprises Pvt. Ltd. and other shareholders, the Supreme Court upheld the approval given by the Mumbai bench of the National Company Law Tribunal for the National Spot Exchange Ltd.'s scheme of arrangement to pay INR 19.50 billion to its 5,682 traders for a one-time amicable full and final settlement. The apex court also upheld the National Company Law Appellate Tribunal's Jan. 15 order that held L.J. Tanna and others constituted a mere 0.26% of voting rights and as such had no "locus" to challenge the scheme.

 

The petitioners had argued that National Spot Exchange's scheme was legally unsustainable and constituted a calculated attempt to bypass statutory attachments under the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act, 1999 and overrode solemn undertakings given to the Bombay High Court and the Supreme Court. The scheme proposed to pay a meagre 42.34% of the admitted claims to the creditors, forcing them to waive the balance amount and withdraw all pending legal proceedings, said the petitioners.

 

The National Spot Exchange, with the support of its parent company 63 Moons Technologies Ltd., had filed a scheme of settlement before the National Company Law Tribunal for a one-time amicable full and final settlement with the traders. The scheme of settlement was put to vote by the tribunal, wherein 92.81% of traders in number and 91.35% in value voted in favour of the one-time settlement. The settlement scheme envisages payment to traders in proportion to their outstanding dues as of Jul. 31, 2024, against closure of legal cases against the National Spot Exchange and its parent 63 Moons Technologies, along with assignment of all rights of traders in favour of the latter. 

 

The National Spot Exchange operates an electronic exchange platform for commodity trading. In 2007, a gazette notification exempted "forward contracts of one-day duration" on the National Spot Exchange platform from provisions under the Forward Contracts Regulation Act, 1952, subject to conditions. In 2013, the Department of Consumer Affairs instructed the National Spot Exchange to suspend all forward contracts and to ensure all existing contracts were settled as per their due dates. Consequent to this regulatory instruction, the National Spot Exchange announced the closure of trading in all paired contracts. As a result of the default by the members of the Exchange, there was a failure in making payouts to their traders, resulting in a default of about INR 54.03 billion.

 

The purported payment defaults on the National Spot Exchange platform led to widespread litigation involving multiple stakeholders, including traders, brokers, and the petitioner company's parent 63 Moons Technologies. The traders who suffered financial losses due to the default have ongoing claims that remain disputed, particularly by National Spot Exchange, 63 Moons, and associated entities. Litigation proceedings had been pending for more than 11 years.  End

 

Reported by Surya Tripathi

Edited by Tanima Banerjee

 

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