NCLT order disturbing, should have taken our leave, says SC in Unitech case
Government approached the NCLT to take over the Unitech management in a move to protect the interests of nearly 20,000 home buyers, and 51,000 depositors to whom the company owes Rs 723 crore.
Real estate builder Unitech faced selling pressure on Tuesday, as the Supreme Court adjourned the company's plea against government's intervention in suspending its directors and taking over.
The apex court was supposed to hear Unitech's plea today challenging the order of the National Company Law Tribunal (NCLT).
The SC reportedly said, "Company Law Tribunal, NCLT should have taken leave of apex court before allowing Centre to take over Unitech Ltd."
The apex court further said, "Centre seeks time in SC on appeal of Unitech challenging NCLT order allowing government to take over it," adding that NCLT order on Unitech is disturbing, thus the matter will be heard on December 13, 2017.
At 1301 hours, Unitech was trading at Rs 7.88 per piece on the BSE, down by 2.23%.
Earlier on December 8, the NCLT suspended all the eight directors of Unitech over allegations of mismanagement and siphoning of funds, and further authorised the government to appoint its 10 nominees on the board.
Soon after the NCLT's order, the Unitech challenged the case and submitted a plea before the Supreme Court.
The government had approached the company law tribunal to take over the Unitech management in a move to protect the interest of nearly 20,000 home buyers, and 51,000 depositors to whom the company owes Rs 723 crore.
Such intervention of government took place almost a decade after it had taken over the board of IT firm Satyam (now Tech Mahindra) and sold it to Mahindras'.
NCLT has given government till December 20, time to provide with name of its nominees in Unitech and also suspended directors from selling their personal and company properties.
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