LAWS(SC)-2025-5-81

NATIONAL SPOT EXCHANGE LIMITED Vs. UNION OF INDIA

Decided On May 15, 2025
National Spot Exchange Limited Appellant
V/S
UNION OF INDIA Respondents

JUDGEMENT

(1.) While considering the validity of the orders dtd. 10/8/2023 and 8/1/2024 passed by the Supreme Court Committee appointed by this Court vide the order dtd. 4/5/2022, following two questions were framed by this Court to be heard in priority on the basis of the categorisation of the Applications filed in the captioned Writ Petition vide the Order dtd. 2/4/2024.

(2.) The genesis of the Writ proceedings, is the scam which took place at the Commodity Exchange Platform of the Petitioner Company - National Spot Exchange Limited (NSEL), a company registered under the Companies Act, 1956, on 18/5/2005. It is promoted by 63 Moons Technologies Limited (Formerly Financial Technologies India Limited), which holds 99.99% of total share capital of the company and the National Agricultural Cooperative Marketing Federation of India Limited (NAFED) holds 0.01% of total share capital of company. The Exchange Platform of the NSEL committed payment defaults and fraud aggregating to about Rs.5,600.00 Crores vis-a-vis their trading counterparts numbering about 13,000 traders who traded through its Members/ brokers.

(3.) Brief facts germane for deciding the above stated two priority questions of law are as under: -