Govt takeover of Unitech: NCLT should have taken our leave, says apex court

A bench comprising Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud asked the Centre why it had not taken the apex court's permission to move the National Company Law Tribunal (NCLT) for suspension of Unitech's directors and their substitution by government nominees. "The leave of this court, which is seized of the matter, should have been taken by the NCLT," the bench observed, adding, "we are only asking that we are seized of the matter and the NCLT is passing the order".

Additional Solicitor General Tushar Mehta, appearing for the Centre, sought time till tomorrow to seek instruction from the concerned authorities on the appeal of Unitech Limited against the order of the NCLT. The court granted time and fixed the pleas, including the fresh appeal filed by Unitech against the NCLT order, for hearing tomorrow.

Senior lawyers Mukul Rohatgi and Ranjit Kumar, appearing for the real estate firm and its promoters, said the apex court had given time to Unitech chief Sanjay Chandra to negotiate from jail to sell assets to generate Rs 750 crore for refunding money to home buyers but, in the mean time, the Centre has approached the NCLT. Rohatgi alleged that the NCLT did not issue notice to the firm and its directors and passed the interim order, which was virtually a final order, and allowed the Centre to take over the firm.

"I have serious apprehension about the manner in which the petition was filed and entertained by the NCLT despite the fact that the Supreme Court was seized of the matter," he said, adding "no judicial tribunal can pass such an order".

Earlier, the apex court had agreed to hear today the appeal of Unitech Limited challenging the NCLT order allowing the Centre to take over its management.

The NCLT, on December 8, had suspended all the eight directors of the realty firm over allegations of mismanagement and siphoning of funds and had authorised the Centre to appoint its 10 nominees on the board.

The NCLT order had come after the Centre moved the panel with a view to protect the interests of nearly 20,000 home buyers. Unitech alleged that the takeover of the management of the company by the Centre would make it difficult for them to deposit Rs 750 crore as directed by the apex court to safeguard the interests of homebuyers.