Supreme Court stays order of NCLT allowing Centre to take over Unitech management

The Supreme Court bench of Chief Justice Dipak Misra, Justice D. Y. Chandrachud and Justice A. M. Khanwilkar on Wednesday stayed the order of the National Company Law Tribunal (NCLT) which allowed the Centre to take over the management of the affairs of Unitech by nomination of 10 directors to its board by granting stay on the interim order dated December 8 of the NCLT, which also suspended 8 directors of the Unitech Ltd. while further restraining them from alienating any property belonging to them or the company.

Attorney General K. K. Venugopal submitted that the Ministry of Corporate Affairs had erred in filing the petition before the NCLT without seeking the permission of the Supreme Court.

The bench had earlier found issue with the Centre approaching the principal bench of the NCLT at New Delhi under Section 241 of the Companies Act, 2013 without seeking the permission of the Supreme Court. The Court had also disapproved of the above mentioned interim order of the NCLT.

The Supreme Court is scheduled to hear the matter on January 12, 2018.

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