December 12, 2017:
The Unitech company has over Rs 6,000 crore debt and over 16,000 undelivered units from a total of nearly 70 projects.
On Tuesday, Supreme Court made some strong remarks with regard to last week’s order of National Company Law Tribunal (NCLT) that had allowed Ministry of Corporate Affairs (MCA) to appoint ten nominee directors to take over management of Unitech Ltd.
CJI Dipak Misra staed that,“Leave should have been taken from us. Manner in which the order has been passed is very very disturbing.”
Apex Court Bench headed by CJI Dipak Misra and comprising Justice AM Khanwilkar and Justice DY Chandrachud, made the obsevations which were in tune with the submissions made by the Senior Advocate Mukul Rohatgi, who appeared for Unitech.
Senior Advocate Mukul Rohatgi submitted that,“I have a grievance against the manner in which order has been passed by NCLT. No notice was given to us. We did not even know. My friend Mr. Kumar had to rush to the NCLT, still they refused to modify the order. No judicial tribunal can pass such an order.
He further added that,"You take over a company in a single stroke without hearing us. Entire Board has been removed. Board is answerable to this Court.”
Appearing for Centre, ASG Tushar Mehta started his submissions by stating that, “I cannot outshout my friend.”
ASG then sought time till tomorrow to take instructions.
Supreme Court Bench has adjourned the matter for tomorrow.
NCLT Bench headed by Justice MM Kumar had passed orders on Friday morning, allowing Ministry of Corporate Affairs (MCA) to appoint ten nominee directors to take over management of Unitech Ltd, subject to directions of the Tribunal.
Later that in the day, Unitech approached NCLT seeking that order be kept in abeyance, relying on a Supreme Court order passed in September,2017 prohibiting any coercive action against company.
But NCLT Bench refused to change its stance, noting that its order would be subject to Supreme Court order on which reliance was placed.
On Monday, Supreme Court had agreed to hear tomorrow appeal of Unitech Limited challenging recent order of Company Law Tribunal allowing Centre to take over its management.
National Company Law Tribunal (NCLT) had on December 8, had suspended all eight directors of realty firm over the allegations of mismanagement and siphoning of the funds and had authorised Centre to appoint its 10 nominees on board.
NCLT's order had come after Centre moved the panel with a view to protect interest of nearly 20,000 home buyers.
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