Appoint new CFO for RattanIndia Finance within 60 days, says NCLAT

Appellate tribunal NCLAT on Wednesday set aside an NCLT order and directed to appoint a CFO for non-banking finance company RattanIndia Finance within 60 days.

A three-member NCLAT bench said any suggested candidate by the JV partner LSF 10 Rose Investments, under section 140 of the articles of association (AoA) of the company, should be eligible under the provision of section 203 of the Companies Act, which provides for the appointment of Key Managerial Personnel (KMP).

The National Company Law Appellate Tribunal (NCLAT) also held that NCLT had "committed error" in inferring that provision in article 140 of the AoA does not contemplate that a person's nomination can be considered to be valid or invalid.

"The Impugned Order (of NCLT) is, therefore, set aside and the parties are directed to take necessary action for appointment of CFO of the R-2 company (Rattan India Finance) as per article 140 of the AoA, after making valid nominations, keeping in view section 203 of the Companies .