MUMBAI: Digital cinema distribution firm UFO Movies India has received the National Company Law Appellate Tribunal’s (NCLAT) approval for the merger between the company and Chennai-based Qube Cinemas Technologies.Earlier, in January, the Mumbai bench of the National Company Law Tribunal (NCLT) had rejected the scheme of merger citing that the whole scheme appears to be framed for the purpose of evading the duly payable stamp-duty and to deny the shareholders at various levels their legitimate right of a proper valuation of the intrinsic share value along with goodwill.The companies had challenged the move in the NCLAT.On October 24, NCLAT’s division bench comprising Justices SJ Mukhopadhaya, Venugopal and Jarat Kumar Jain had set aside the NCLT order as well as the observation made by the tribunal in its four page order.The multi-layered deal involved the merger of UFO and its wholly owned subsidiary PJSA Technosoft with Qube Cinema and its group companies Qube Digital Cinema and Moviebuff.The NCLAT, in its order, observed that the ground given for rejection in the NCLT order were uncalled for and the tribunal was only required to notice all the requirements of Section 230-232 of Companies Act.“The Tribunal was also required to follow the Accounting Standard for the treatment of shareholders. However, it is expected that such issue was not raised and were not discussed by the NCLT,” observed the appellate tribunal.UFO Moviez had announced the merger in November 2017, with an aim to be the leader in India’s digital cinema distribution and in-cinema advertising space.