NCLAT rejects MMTC plea against one-time settlement between NSEL and traders

Appellate tribunal NCLAT on Monday set side an appeal by state-owned trading firm MMTC, challenging the one-time settlement (OTS) between 63 Moons-backed National Spot Exchange Ltd (NSEL) and traders.

The Mumbai bench of the National Company Law Tribunal had on November 28, 2025, approved a Rs 1,950-crore settlement scheme between NSEL, along with its promoter 63 Moons, and traders who had dues aggregating nearly Rs 4,300 crore.

The scheme was challenged by MMTC before the National Company Law Appellate Tribunal (NCLAT), saying it is “prejudicial to the public interest” and opposed to the public policy.

During the course of the hearing, the NCLAT pointed out that the said National Company Law Tribunal (NCLT) order of November 11, 2025, has already been approved by it earlier and also been affirmed by the Supreme Court in a civil appeal on March 9, 2026.

However, Additional Solicitor General Vikramjit Banerjee, representing MMTC, argued that even if is approved by “NCLT and this Tribunal and affirmed by the Supreme Court, can be recalled if it is proved the scheme is vitiated by fraud”.

In support of his argument, the ASG referred to various paras of the order passed by the NCLT and argued the order notes wrong facts, viz., the EOW, as well as the competent authority of MPID (Maharashtra Protection of Interest of Depositors) did not object to the scheme.

These facts are wrongly recorded, hence the impugned order is vitiated by fraud, ASG had contended.

However, NCLAT in its order said the OTS scheme was approved by more than 90 per cent of creditors and from May-November 2025, the MMTC did not assail the resolutions passed and voted against it.

“We need to say the ASG had only pointed out to the paras of the impugned order to show the fraud is committed upon the NCLT but to our considered view, at best it can be treated as an incorrect finding but not fraud,” NCLAT said, adding, “we need to note neither the ED nor EOW or MPID came up in appeal before this Court and none of these authorities even challenged the scheme before the NCLT.”

Moreover, NCLT in its order dated September 17, 2025, has recorded the counsel appearing on behalf of EOW as well as the competent authority under the MPID Act has submitted that they have no objection to the proposed scheme.

Under the settlement scheme, traders had agreed to withdraw all legal cases against NSEL and 63 Moons.

The NSEL crisis originated in July 2013, when the Department of Consumer Affairs had asked NSEL to close out all contracts, which had aggravated a payments crisis worth over Rs 5,400 crore.