The Supreme Court on Tuesday said the National Company Law Tribunal (NCLT) should have taken its leave before allowing the Union government to take over the management of embattled realty firm Unitech Limited.
A Bench, comprising Chief Justice Dipak Misra and Justices A.M. Khanwilkar and D.Y. Chandrachud, considered the request of Additional Solicitor General Tushar Mehta that one more day be given to him to seek instructions from the authorities concerned on the appeal of Unitech Limited against the tribunal order.
The Bench took note of the submissions of senior advocate Mukul Rohatgi, appearing for the realty firm, that the tribunal passed an interim order without hearing the company and its directors who are in jail.
“The leave of this court, which is seized of the matter, should have been taken by the NCLT,” the Bench observed and posted the compan's appeal for hearing on Wednesday.
Suspension of directors
The NCLT, on December 8, suspended all the eight directors of the realty firm over allegations of mismanagement and siphoning of funds and authorised the Centre to appoint its 10 nominees on the board.
The NCLT order came after the Centre moved the panel with a view to protecting the interest of nearly 20,000 homebuyers.
Sanjay Chandra, head of the real estate group, was asked on October 30 by the apex court to deposit ₹750 crore with it by December end for the sake of the homebuyers.
The NCLT, in its order, said the government must give the names of its nominees by December 20 and restrained Unitech’s suspended directors from selling their personal and company properties.
Govt. petition
The Tribunal’s order came after the government filed a petition arguing that Unitech was a fit case for winding up, but considering the interest of thousands of homebuyers and small depositors, it wanted to take over the company management.
The company has over ₹6,000 crore debt and over 16,000 undelivered units from a total of nearly 70 projects.
The apex court, on October 30, said jailed businessman Mr. Chandra would be granted bail only after the real estate group deposited money with its registry by December end.
The court has earlier directed the jail authorities to facilitate Mr. Chandra’s meeting with his company officials and lawyers so that he could arrange money to refund the home buyers as well as for completing the ongoing housing projects.
Mr. Chandra is seeking interim bail from the court after the Delhi High Court, on August 11, rejected the plea in a criminal case lodged in 2015 by 158 homebuyers of Unitech projects’ — ‘Wild Flower Country’ and ‘Anthea Project’ — situated in Gurugram.
