NSEL-FTIL merger: HC vacates status quo with draft order

In a move that could pave the way for a merger between the scam-tainted NSEL and FTIL, the Bombay High Court has vacated the status quo with a draft order. This effectively means that the government can now go ahead and pass the final order on the matter. Cyril Shroff, the counsel FTIL believes the high court order doesn’t change anything in terms of moving ahead. The FTIL petition continues to remain pending, he adds.

He says: “The effective stay still continues even if a final order is passed after the government here see submission, there is an effective stay for two weeks thereafter and the FTIL petition continues to remain pending.” What has happened, according to him, is that the MCA council made a statement that they have not yet made up their mind in terms of whether they would like to go ahead with the amalgamation or not and would like to hear submission of the parties. What will happen now after the government puts up the order on website is for all parties including FTIL and those who have an interest under the Section 396 will make the submissions, he says. The outcome could be either the scheme is dropped or a final order is passed and if passed it will still be stayed and subject to the outcome of the petition, he adds.