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NCLT adjourns case against Unitech after SC stay on govt takeover

The Supreme Court stayed an NCLT order directing a management take-over of the firm by a group of directors appointed by the Centre.

Reported by: IANS, New Delhi [ Published on: December 20, 2017 16:32 IST ]
The development came a few days after the National Company
Image Source : PTI The development came a few days after the National Company Law Tribunal had ordered a management take-over of the firm by a group of directors appointed by the central government.

A top corporate tribunal on Wednesday adjourned hearing a plea against real estate developer Unitech as to await further directions from the Supreme Court.

The development came a few days after the National Company Law Tribunal had ordered a management take-over of the firm by a group of directors appointed by the central government.

The Supreme Court stayed the NCLT order last week.

After Wednesday's adjournment, the Unitech stock on the BSE rose by Rs 0.39 or 5.79 per cent to Rs 7.13 (provisional) from its previous close of Rs 6.74.

On a plea by the Central government seeking to take control of Unitech, the NCLT had suspended all the eight directors of Unitech over allegations of mismanagement and siphoning of funds and directed the MCA to nominate 10 directors to the board.

Also Read: Insolvency row: SC stays NCLT order on govt takeover of embattled real estate firm Unitech

The government had approached the NCLT to take over the management to protect the interests of nearly 20,000 home buyers and 51,000 depositors to whom the company owes over Rs 700 crore.

The NCLT ordered the government to furnish the names of its nominees by the next date of hearing on December 20, but adjourned the case after Supreme Court order.

The government argued that Unitech was a fit case for insolvency, but considering the interests of thousands of home buyers and small depositors, it would be advisable for the state to take over the company's management.

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