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Informist, Monday, Mar. 30, 2026

NEW DELHI – The National Company Law Appellate Tribunal Monday rejected MMTC Ltd.'s plea against the approval granted by the Mumbai bench of the National Company Law Tribunal to 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 appellate tribunal dismissed MMTC's objection that National Spot Exchange's scheme was prejudicial to the public interest and opposed to public policy.

 

The appellate tribunal noted that the Supreme Court had on Mar. 9 dismissed pleas by L.J. Tanna Enterprises Pvt. Ltd. and other shareholders of the company against the scheme of arrangement. Just because MMTC is a central government public-sector undertaking dealing with public funds, it cannot be grounds to challenge the scheme on fraud, the tribunal said.

 

The appellate tribunal further said that when the scheme was approved by more than 90% of the creditors of National Spot Exchange, MMTC did not assail the resolutions adopted or the scheme except for voting against it. No objection was filed by MMTC, which had invested in National Spot Exchange, before the Mumbai tribunal when the scheme was awaiting approval, the appellate tribunal said.

 

National Spot Exchange, with the support of its parent company 63 Moons Technologies Ltd., had filed a scheme of settlement before the Mumbai bench for a one-time amicable full and final settlement with its traders. The scheme of settlement was put to vote by the tribunal and 92.81% of traders in number and 91.35% by 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 National Spot Exchange and 63 Moons, along with assignment of all rights of traders in favour of the latter.

 

National Spot Exchange operated 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 of the Forward Contracts Regulation Act, 1952, subject to conditions. In 2013, the Department of Consumer Affairs instructed 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, National Spot Exchange announced closure of trading in all paired contracts. As a result of the default by members of the exchange, there was a failure in making payouts to its 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 exchange's parent company. The traders who suffered financial losses due to the default have claims that remain disputed, particularly by National Spot Exchange, 63 Moons, and associated entities. Litigation proceedings had been pending for more than 11 years.

 

Monday, shares of 63 Moons Technologies closed 3.6% lower at INR 470.30 on the National Stock Exchange. Shares of MMTC were down 5.6% at INR 52.10.

 

Reported by Surya Tripathi

Edited by Rajeev Pai

 

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