The Supreme Court on Tuesday frowned at the Centre’s decision to bypass it and approach the National Company Law Tribunal (NCLT) for taking over the Unitech case, a move that the Court described as “disturbing” since the development frustrated court’s attempt to arm-twist the company to return the hard-earned money of thousands of homebuyers.
Unitech came to the Supreme Court challenging the December 8 order passed by the NCLT handing over the reins of the company to a Board comprising ten nominated Directors to be chosen by the Centre. Senior advocate Mukul Rohatgi who appeared for the company sought stay of the NCLT order which virtually stalled the efforts of the company to repay the money to homebuyers and obstructed the proceedings in the Supreme Court.
The Bench of Chief Justice Dipak Misra, Justices AM Khanwilkar and DY Chandrachud asked Centre why it approached the NCLT without informing it. The Bench said, "When we are dealing with the issue, leave (permission) should have been taken from us. The MD (Sanjay Chandra) is in jail, the management is not there….what order do we pass. It is disturbing, what do we do." The Court had on previous occasions agreed to release Chandra on the condition that he pays a substantial amount of Rs 750 crore towards the money invested by homebuyers.
Additional Solicitor General (ASG) Tushar Mehta sought a day's time to seek instructions but opposed stay of NCLT order. Rohatgi informed the Bench that irrespective of whichever company it was, such orders cannot be passed by a tribunal in this manner. In one stroke, the Centre has taken over a company by way of an ad-interim order without the company being heard."
The Bench told ASG, "Take instructions by Wednesday. We are only asking that when we are seized of the matter, whether leave should have been taken from us or not and whether NCLT can pass an order that creates a problem."