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NCLT says govt nominated Unitech directors will work as per SC directive

Any interference in working of current management will be detrimental to cause of all stakeholders, Unitech said about the NCLT order.

Press Trust of India  |  New Delhi 

NCLT, Rules, Regulations
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National Company Law Tribunal today declined to keep in abeyance its order to suspend 10 directors of Ltd and permit the government to appoint its nominees on the board of the troubled

The tribunal said that the new directors of the would comply with all the orders of the

"This order, already passed shall be subject to compliance of all orders of Supreme court," said the bench headed by Chairman Justice M M Kumar.

The tribunal also directed Managing Directors Sanjay Chandra and Ajay Chandra to file their replies.

This, hours after debarred its 10 directors, today approached the tribunal contending that the government had not informed the forum of bar on any coercive action against the company.

In a high drama at the National Company Law Tribunal (NCLT), first suffered a jolt when its 10 directors were suspended by the tribunal, which allowed government to appoint their replacements.

Ramesh Chandra-led approached the in the afternoon saying that no "coercive steps for execution" can be taken in view of a November 20 order of the

"Any interference in working of current management will be detrimental to cause of all stakeholders," said about the order.

Earlier in the day, was dragged to the tribunal by the government seeking to take over the functioning of the firm alleging mismanagement and siphoning of funds by the management.

Th counsel representing approached the NCLT, when the tribunal assembled post lunch hearing, contending that government has not shown the facts correctly.

The tribunal would hear the matter later this afternoon.

In the morning, a two-member bench headed by Chairman Justice M M Kumar also directed the government to give 10 names by December 20, the next date of hearing.

The tribunal's direction came over a petition filed by the government to take over management of the company alleging mismanagement and siphoning of funds by the management.

has also issued notice to Ltd directing it to file reply over it.

"In view of the fact and satisfaction of basic criteria for interim directions, a prima facie case is made out and in larger public interest we grant the interim directions," Justice M M Kumar said pronouncing the order.

Additional Solicitor General Sanjay Jain, appearing for the government in NCLT, said: "They (tribunal) have permitted the central government to appoint 10 nominee directors to run the day to day business and list of that would be given by 20th December."

He further said, "We want to avoid insolvency of this company, otherwise the 19,000 home buyers will be left high and dry."

Moreover, there are around 51,000 depositors of

Nobody had appeared for in the morning.

Jain told the tribunal that the government tried to serve an advance copy of the petition but refused to accept it and the official was not allowed enter Unitech's office.

According to Jain, the has also directed that the "suspended directors of the company shall not sell, mortgage or create charge either their properties or company's properties".

In April this year, the Economic Offence Wing (EOW) of the Delhi Police arrested Ltd's Managing Director Sanjay Chandra and his brother Ajay Chandra for allegedly not developing a project despite receiving funds from investors.

The company has over Rs 6,000 crore debt with more than 16,000 undelivered units from a total of nearly 70 projects.

First Published: Fri, December 08 2017. 19:15 IST
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