SC stays NCLT order allowing Govt to take charge of Unitech
Published: Dec 13, 2017
By TIOLCORPLAWS News Service
NEW DELHI, DEC 13, 2017: THE Supreme Court today stayed the NCLT order permitting the government to take control of Unitech Ltd by suspending its board of directors.
The Supreme Court expressed displeasure over the manner in which the government had approached the NCLT. The government should have taken the Apex Court's leave before approaching the NCLT since the Supreme Court was already seized of the matter. NCLT's order was opposed by Unitech, which said that a NCLT could not have exercised its power in such a way where no hearing was given to the Company. Unitech moved the Supreme Court on December 11, 2017 against said order of the NCLT.
On December 8, 2017, the NCLT had dismissed the board of Unitech while hearing the central government's plea to take control of the real estate company, and directed the ministry of corporate affairs (MCA) to nominate 10 directors to the board. The NCLT was of the view that there was a prima facie case that the affairs of the company were not being carried out honestly and there were a number of irregularities in the company's operations. The NCLT also restrained directors of Unitech, from engaging in transactions related to their personal wealth till an investigation into alleged siphoning and diversion of money was concluded.