Full Judgment Text
2026:BHC-AS:14523-DB
KSG 2-IA-4604-2025(1).doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CRIMINAL APPELLATE JURISDICTION
CRIMINAL APPEAL NO. 1351 OF 2019
M/s. 63 Moons Technologies Limited,
(formerly known as Financial,
Technologies (India) Limited having its,
address at F.T. Tower, Suren Road, Chakala,
Andheri (E)), Mumbai 400 093. … Appellant
V/s.
1) Union of India,
Through Deputy Director,
Directorate of Enforcement,
Prevention of Money Laundering,
Act, 2002, Kaiser-I-Hind Building,
Ballard Estate, Mumbai-400 001.
2) National Spot Exchange Limited,
Having its office at Chintamani Plaza,
th
6 Floor, B-Wing, Andheri-Kurla Road,
Chakala, Andheri (East), Mumbai-400 099.
3) The State of Maharashtra … Respondents
WITH
INTERIM APPLICATION NO.4604 OF 2025
IN
CRIMINAL APPEAL NO. 1351 OF 2019
M/s. 63 Moons Technologies Limited … Applicant
V/s.
Union of India & Ors … Respondents
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WITH
CRIMINAL APPEAL (ST) NO. 139 OF 2020
Deputy Director,
Directorate of Enforcement … Appellant
V/s.
M/s. 63 Moons Technologies Limited & Anr … Respondents
WITH
INTERIM APPLICATION NO.455 OF 2020
Deputy Director,
Directorate of Enforcement … Applicant
V/s.
M/s. 63 Moons Technologies Limited & Anr … Respondents
WITH
INTERIM APPLICATION NO.46 OF 2026
M/s. 63 Moons Technologies Limited … Applicant
V/s.
Deputy Director,
Directorate of Enforcement & Anr … Respondents
WITH
WRIT PETITION NO.5167 OF 2019
Jignesh Shah … Petitioner
V/s.
Union of India & Ors … Respondents
WITH
INTERIM APPLICATION NO.45 OF 2026
IN
WRIT PETITION NO.5167 OF 2019
Jignesh Shah … Applicant
V/s.
Union of India & Ors … Respondents
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WITH
CRIMINAL APPEAL NO.1351 OF 2019
M/s. 63 Moons Technologies Limited … Appellant
V/s.
Union of India & Ors … Respondents
_______________________________________
Mr. Vikram Nankani, Senior Advocate a/w Mr. Rahul Sarda, Mr. Vrushabh
Vig, Mr. Vikrant Nalavade, Ms. Priyam Sharma i/b M/s. Crawford Bayley &
Co., for the Applicant in IA/4604/2025 and Appellant in Appeal
No.1351/2019.
Mr. Arvind Lakhawat i/b Mr. Abhijeet Marathe for the Applicant in
IA/45/2026 and for Petitioner in WP/5167/2019.
Mr. Chetan Kapadia, Senior Advocate a/w Mr. Siddharth Puthoor i/b Mehta
& Padmasey for NSEL Investors Forum.
Ms. P.P. Shinde, A.P.P. for Respondent-State.
Mr. Anil C. Singh, Additional Solicitor General of India a/w Mr. Chaitanya
Pendse, Mr. Aditya Thakkar, Mr. Rajdatt Nagre, Mr. Krishnakant Deshmukh,
Mr. Aadarsh Vyas, Ms. Rama Gupta, for the Respondent No.1-ED.
Mr. Arvind Lakhawat a/w Mr. Melvyn Fernandes i/b Vashi Associates for the
Respondent No.2 in IA/4604/2025.
Mr. Arun Khatri, Assistant Director attached to ED is present.
_______________________________________
CORAM : A. S. GADKARI AND
KAMAL KHATA, JJ.
th
DATE : 9 MARCH 2026
JUDGMENT (Per A.S. Gadkari, J.) :-
th
1) Appellant has impugned the Order dated 17 September, 2019,
passed by the Appellate Tribunal for SAFEMA, FEMA, NDPS, PMLA & PBPT
Act, at New Delhi in MP-PMLA-4694/MUM/2018 (Misc.) and other
connected Applications/proceedings therein.
2) Appellant is principally aggrieved with the directions issued by
the Appellate Tribunal, directing the Appellant to furnish indemnity bond for
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a sum of Rs. 1095,27,17,055/- alongwith an undertaking that, if upon the
conclusion of the trial and final adjudication it is found that the attached
movable property constitutes proceeds of crime (PoC), the Appellant shall
deposit the said amount with the Respondent No.1 namely the Union of
India through the Deputy Director, Directorate of Enforcement, PMLA,
Mumbai. The Tribunal further directed that, such undertaking be filed within
one month from the date of the Judgment. It was also held that, subject to
compliance with the aforesaid two conditions, the provisional attachment
Order issued by the Respondent No.1 would stand quashed qua the
Appellant and all its movable properties, namely DEMAT Account and
investment in bonds would stand released. In addition, the Appellate
Tribunal also granted liberty to the Appellant to seek review before the
Tribunal itself or to move the Special Court for modification/vacation of the
interim directions, in the event the two orders passed by the Company Law
Board (‘CLB’) and Economic Offence Wing (‘EOW’) were vacated.
3) Criminal Appeal (ST) bearing No.139 of 2020, has been
preferred by the Deputy Director, Directorate of Enforcement, Mumbai,
challenging the same Judgment and Order. For the sake of convenience, the
Directorate of Enforcement is hereinafter referred to as Respondent No.1.
3.1) The Respondent No.1 is aggrieved by the entire Order, and in
particular, the lifting of the attachment pursuant to the Appellate Tribunal’s
directions upon furnishing the aforenoted undertaking by the Appellant.
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4) We have heard these Appeals at considerable length on earlier
occasions. We have also borne in mind the grievances and plight of the
thousands of investors of the erstwhile National Spot Exchange Limited
(‘NSEL’), now Respondent No.2.
5) The record indicates that NSEL filed Application bearing No.
C.A.(C.A.A.)/65(MB) 2025, seeking directions for convening a meeting of
the Investors/Creditors, as well as Company Petition No. C.P.
(C.A.A.)/104(MB) 2025 in C.A.(C.A.A.)/65(MB) 2025, seeking sanction of
the Scheme approved by the NSEL Investors Forum. The said Company
Petition came to be allowed in terms of the prayer clauses (a), (b) and (c) of
the Petition. However, the National Company Law Tribunal (‘NCLT’) clarified
its order by issuing the following two directions :-
“(i) The sanction of the present Scheme shall not, in any
manner, override, dilute, or affect the operation of any subsisting
attachment orders issued by any Court, Tribunal, or Authority, and
the same shall happen in accordance with the Order passed by such
Court, Tribunal, or Authority on an application filed in terms of the
Scheme.
(ii) The sanction of the Scheme shall not be construed the
quashing, withdrawal or termination of any criminal proceedings
pending before any judicial, quasi-judicial, or other competent
authorities, and the same shall be decided in accordance with the
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Order passed by such Court, Tribunal, or Authority on an
application filed in terms of the Scheme.”
6) Today, Mr. Nankani, learned senior counsel appearing for the
Appellant, informed the Court that the said Order has been upheld by the
Hon’ble Supreme Court and the S.L.P. filed by the disgruntled investor has
been dismissed.
7) During the course of hearing, Mr. Anil C. Singh, learned
Additional Solicitor General of India, with usual fairness at his command
submitted that, the Respondent No.1 has no serious objection to the
implementation of the NCLT Order in its true letter and spirit. He, however,
requested this Court to further clarify that paragraph No.56(i) of the Order
th
dated 28 November, 2025, be implemented in its true letter and spirit.
th
8) The record further indicates that, by Order dated 28 November,
2025, the NCLT appointed former Judge of this Court, Shri. Justice S.C.
Gupte, as the Monitoring Authority for distribution of the settlement amount
to the specified creditors. The list of creditors benefiting under the said
scheme is annexed at Schedule No.III to the Interim Application No.4604 of
2025.
9) Apart from the merits of the case, we have also considered the
grievances and plight of the thousands of investors, who are the ultimate
victims of the alleged crime.
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10) Upon perusal of the scheme, we are unable to agree with
Paragraph No.24.6 of the Scheme of Arrangement annexed at Exhibit-A to
the Interim Application No.4604 of 2025 which reads thus:
“24.6. After the Settlement Trigger event, the Consenting
Brokers, Consenting Brokers’ Associates, Persons in the 63 moons
Group past and present employees of 63 moons and NSEL (to the
exclusion of Amit Mukherjee, Jai Bahukhandi, Anjani Sinha and
Manishchandra Pandey), and Specified Creditors, through the persons
mentioned in Clause 24.14, shall jointly apply to respective Courts for
quashing/compounding/dismissal/discharge of criminal proceedings.”
11) Prima facie, it appears that through the mechanism of
settlement, the accused persons are attempting, albeit indirectly, to secure
exoneration from the alleged offences by which several unsuspecting
investors appear to have been duped. We are unable to countenance such a
course. The offences alleged are serious in nature and must be taken to their
logical conclusion before a competent Criminal Court. In our view, a Civil
Court (NCLT) cannot determine or dilute the consequences of criminal
prosecution by incorporating or accepting any covenant in a scheme or
agreement executed between the parties by consent.
12) In view of the above Interim Application No.4604 of 2025, is
allowed in terms of amended prayer clause (a). Consequently, the connected
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Appeals, Interim Applications, and Writ Petition, do not survive and are
accordingly disposed off.
13) We reiterate that although the NCLT has clarified the legal
position in unequivocal terms, the lifting of attachment over the assets in
question and the consequent disbursement of amounts to the
investors/victims shall in no manner be construed as dilution of criminal
charges against the accused persons in the present crime. The criminal
prosecution shall proceed independently and will be taken to its logical end
as expeditiously as possible by all prosecuting agencies.
( KAMAL KHATA, J. ) ( A.S. GADKARI, J. )
Digitally
signed by
KIRAN
SANJAY
GHUGE
Date:
2026.03.26
15:32:12
+0530
KIRAN
SANJAY
GHUGE
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CRIMINAL APPELLATE JURISDICTION
CRIMINAL APPEAL NO. 1351 OF 2019
M/s. 63 Moons Technologies Limited,
(formerly known as Financial,
Technologies (India) Limited having its,
address at F.T. Tower, Suren Road, Chakala,
Andheri (E)), Mumbai 400 093. … Appellant
V/s.
1) Union of India,
Through Deputy Director,
Directorate of Enforcement,
Prevention of Money Laundering,
Act, 2002, Kaiser-I-Hind Building,
Ballard Estate, Mumbai-400 001.
2) National Spot Exchange Limited,
Having its office at Chintamani Plaza,
th
6 Floor, B-Wing, Andheri-Kurla Road,
Chakala, Andheri (East), Mumbai-400 099.
3) The State of Maharashtra … Respondents
WITH
INTERIM APPLICATION NO.4604 OF 2025
IN
CRIMINAL APPEAL NO. 1351 OF 2019
M/s. 63 Moons Technologies Limited … Applicant
V/s.
Union of India & Ors … Respondents
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WITH
CRIMINAL APPEAL (ST) NO. 139 OF 2020
Deputy Director,
Directorate of Enforcement … Appellant
V/s.
M/s. 63 Moons Technologies Limited & Anr … Respondents
WITH
INTERIM APPLICATION NO.455 OF 2020
Deputy Director,
Directorate of Enforcement … Applicant
V/s.
M/s. 63 Moons Technologies Limited & Anr … Respondents
WITH
INTERIM APPLICATION NO.46 OF 2026
M/s. 63 Moons Technologies Limited … Applicant
V/s.
Deputy Director,
Directorate of Enforcement & Anr … Respondents
WITH
WRIT PETITION NO.5167 OF 2019
Jignesh Shah … Petitioner
V/s.
Union of India & Ors … Respondents
WITH
INTERIM APPLICATION NO.45 OF 2026
IN
WRIT PETITION NO.5167 OF 2019
Jignesh Shah … Applicant
V/s.
Union of India & Ors … Respondents
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WITH
CRIMINAL APPEAL NO.1351 OF 2019
M/s. 63 Moons Technologies Limited … Appellant
V/s.
Union of India & Ors … Respondents
_______________________________________
Mr. Vikram Nankani, Senior Advocate a/w Mr. Rahul Sarda, Mr. Vrushabh
Vig, Mr. Vikrant Nalavade, Ms. Priyam Sharma i/b M/s. Crawford Bayley &
Co., for the Applicant in IA/4604/2025 and Appellant in Appeal
No.1351/2019.
Mr. Arvind Lakhawat i/b Mr. Abhijeet Marathe for the Applicant in
IA/45/2026 and for Petitioner in WP/5167/2019.
Mr. Chetan Kapadia, Senior Advocate a/w Mr. Siddharth Puthoor i/b Mehta
& Padmasey for NSEL Investors Forum.
Ms. P.P. Shinde, A.P.P. for Respondent-State.
Mr. Anil C. Singh, Additional Solicitor General of India a/w Mr. Chaitanya
Pendse, Mr. Aditya Thakkar, Mr. Rajdatt Nagre, Mr. Krishnakant Deshmukh,
Mr. Aadarsh Vyas, Ms. Rama Gupta, for the Respondent No.1-ED.
Mr. Arvind Lakhawat a/w Mr. Melvyn Fernandes i/b Vashi Associates for the
Respondent No.2 in IA/4604/2025.
Mr. Arun Khatri, Assistant Director attached to ED is present.
_______________________________________
CORAM : A. S. GADKARI AND
KAMAL KHATA, JJ.
th
DATE : 9 MARCH 2026
JUDGMENT (Per A.S. Gadkari, J.) :-
th
1) Appellant has impugned the Order dated 17 September, 2019,
passed by the Appellate Tribunal for SAFEMA, FEMA, NDPS, PMLA & PBPT
Act, at New Delhi in MP-PMLA-4694/MUM/2018 (Misc.) and other
connected Applications/proceedings therein.
2) Appellant is principally aggrieved with the directions issued by
the Appellate Tribunal, directing the Appellant to furnish indemnity bond for
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a sum of Rs. 1095,27,17,055/- alongwith an undertaking that, if upon the
conclusion of the trial and final adjudication it is found that the attached
movable property constitutes proceeds of crime (PoC), the Appellant shall
deposit the said amount with the Respondent No.1 namely the Union of
India through the Deputy Director, Directorate of Enforcement, PMLA,
Mumbai. The Tribunal further directed that, such undertaking be filed within
one month from the date of the Judgment. It was also held that, subject to
compliance with the aforesaid two conditions, the provisional attachment
Order issued by the Respondent No.1 would stand quashed qua the
Appellant and all its movable properties, namely DEMAT Account and
investment in bonds would stand released. In addition, the Appellate
Tribunal also granted liberty to the Appellant to seek review before the
Tribunal itself or to move the Special Court for modification/vacation of the
interim directions, in the event the two orders passed by the Company Law
Board (‘CLB’) and Economic Offence Wing (‘EOW’) were vacated.
3) Criminal Appeal (ST) bearing No.139 of 2020, has been
preferred by the Deputy Director, Directorate of Enforcement, Mumbai,
challenging the same Judgment and Order. For the sake of convenience, the
Directorate of Enforcement is hereinafter referred to as Respondent No.1.
3.1) The Respondent No.1 is aggrieved by the entire Order, and in
particular, the lifting of the attachment pursuant to the Appellate Tribunal’s
directions upon furnishing the aforenoted undertaking by the Appellant.
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4) We have heard these Appeals at considerable length on earlier
occasions. We have also borne in mind the grievances and plight of the
thousands of investors of the erstwhile National Spot Exchange Limited
(‘NSEL’), now Respondent No.2.
5) The record indicates that NSEL filed Application bearing No.
C.A.(C.A.A.)/65(MB) 2025, seeking directions for convening a meeting of
the Investors/Creditors, as well as Company Petition No. C.P.
(C.A.A.)/104(MB) 2025 in C.A.(C.A.A.)/65(MB) 2025, seeking sanction of
the Scheme approved by the NSEL Investors Forum. The said Company
Petition came to be allowed in terms of the prayer clauses (a), (b) and (c) of
the Petition. However, the National Company Law Tribunal (‘NCLT’) clarified
its order by issuing the following two directions :-
“(i) The sanction of the present Scheme shall not, in any
manner, override, dilute, or affect the operation of any subsisting
attachment orders issued by any Court, Tribunal, or Authority, and
the same shall happen in accordance with the Order passed by such
Court, Tribunal, or Authority on an application filed in terms of the
Scheme.
(ii) The sanction of the Scheme shall not be construed the
quashing, withdrawal or termination of any criminal proceedings
pending before any judicial, quasi-judicial, or other competent
authorities, and the same shall be decided in accordance with the
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Order passed by such Court, Tribunal, or Authority on an
application filed in terms of the Scheme.”
6) Today, Mr. Nankani, learned senior counsel appearing for the
Appellant, informed the Court that the said Order has been upheld by the
Hon’ble Supreme Court and the S.L.P. filed by the disgruntled investor has
been dismissed.
7) During the course of hearing, Mr. Anil C. Singh, learned
Additional Solicitor General of India, with usual fairness at his command
submitted that, the Respondent No.1 has no serious objection to the
implementation of the NCLT Order in its true letter and spirit. He, however,
requested this Court to further clarify that paragraph No.56(i) of the Order
th
dated 28 November, 2025, be implemented in its true letter and spirit.
th
8) The record further indicates that, by Order dated 28 November,
2025, the NCLT appointed former Judge of this Court, Shri. Justice S.C.
Gupte, as the Monitoring Authority for distribution of the settlement amount
to the specified creditors. The list of creditors benefiting under the said
scheme is annexed at Schedule No.III to the Interim Application No.4604 of
2025.
9) Apart from the merits of the case, we have also considered the
grievances and plight of the thousands of investors, who are the ultimate
victims of the alleged crime.
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10) Upon perusal of the scheme, we are unable to agree with
Paragraph No.24.6 of the Scheme of Arrangement annexed at Exhibit-A to
the Interim Application No.4604 of 2025 which reads thus:
“24.6. After the Settlement Trigger event, the Consenting
Brokers, Consenting Brokers’ Associates, Persons in the 63 moons
Group past and present employees of 63 moons and NSEL (to the
exclusion of Amit Mukherjee, Jai Bahukhandi, Anjani Sinha and
Manishchandra Pandey), and Specified Creditors, through the persons
mentioned in Clause 24.14, shall jointly apply to respective Courts for
quashing/compounding/dismissal/discharge of criminal proceedings.”
11) Prima facie, it appears that through the mechanism of
settlement, the accused persons are attempting, albeit indirectly, to secure
exoneration from the alleged offences by which several unsuspecting
investors appear to have been duped. We are unable to countenance such a
course. The offences alleged are serious in nature and must be taken to their
logical conclusion before a competent Criminal Court. In our view, a Civil
Court (NCLT) cannot determine or dilute the consequences of criminal
prosecution by incorporating or accepting any covenant in a scheme or
agreement executed between the parties by consent.
12) In view of the above Interim Application No.4604 of 2025, is
allowed in terms of amended prayer clause (a). Consequently, the connected
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Appeals, Interim Applications, and Writ Petition, do not survive and are
accordingly disposed off.
13) We reiterate that although the NCLT has clarified the legal
position in unequivocal terms, the lifting of attachment over the assets in
question and the consequent disbursement of amounts to the
investors/victims shall in no manner be construed as dilution of criminal
charges against the accused persons in the present crime. The criminal
prosecution shall proceed independently and will be taken to its logical end
as expeditiously as possible by all prosecuting agencies.
( KAMAL KHATA, J. ) ( A.S. GADKARI, J. )
Digitally
signed by
KIRAN
SANJAY
GHUGE
Date:
2026.03.26
15:32:12
+0530
KIRAN
SANJAY
GHUGE
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