SC says NCLT order on Unitech 'disturbing', hearing to resume today

Published On: 13, Dec 2017 | Source: business-standard.com

The Supreme Court has expressed its unhappiness over the National Company law Tribunal passing an order against realty major Unitech, even as it was hearing matters relating to the company.

"It is disturbing," chief justice Dipak Misra observed while hearing a special leave petition moved by Unitech. "We are hearing the matter. is passing the order. Whether leave should be taken or not?" Misra asked.

The government lawyers pointed out that the said that its orders were subject to the Supreme Court's orders and sought a day's time to take instructions. The bench of Misra, AM Khanwilkar and DY Chandrachud posted the matter for hearing on Wednesday.

Earlier, moving the petition Mukul Rohatgi said the government petition and the order were in breach of earlier Supreme Court orders. He also argued that the move fell short of principles of natural justice as no hearing was given. Referring to the group promoter Sanjay Chandra, who is in jail, Rohatgi, "I am in jail and have been negotiating with people( sale of assets to raise money for homebuyers) and a petition is filed to replace the entire board. There is no notice and there is a false statement that the company has refused service." Rohatgi added that SC had prohibited any coercive steps while the negotiations were on.

The bench wanted to know whether any application was filed or permission sought to serve the notice in jail.

Earlier this week, The had allowed the government takeover of the company's board under Section 241 of the Act and asked the Ministry of Company Affairs (MCA) to name 10 nominee directors to the Unitech Board. The government is expected to give in the names by December 20, the next date of the hearing in the

The order had come on a plea by the Ministry.