Unitech: Supreme Court stays NCLT order after Centre admits it should have approached SC

The Supreme Court today stayed the order passed by National Company Law Tribunal (NCLT), which had directed takeover of management of Unitech by appointing nominee directors.

When the matter came up for hearing today, Attorney General KK Venugopal told the Court that the Central government should have taken leave of the Supreme Court before approaching the NCLT.

The Bench of Chief Justice Dipak Misra and Justices AM Khanwilkar and DY Chandrachud then proceeded to stay the order passed by NCLT.

The NCLT Bench headed by Justice MM Kumar had passed an order on December 8, allowing the Ministry of Corporate Affairs (MCA) to appoint ten nominee directors to take over the management of Unitech Ltd, subject to the directions of the Tribunal.

Later that afternoon, Unitech approached the NCLT seeking that the order be kept in abeyance, relying on a Supreme Court order passed in September prohibiting coercive action against the company. However, the NCLT Bench refused to change its stance, noting that its order would be subject to the Supreme Court order on which reliance was placed.

Thereafter, on December 12, Unitech approached the Supreme Court against the NCLT Order, when the Supreme Court made some strong remarks with regard to the NCLT Order.

Chief Justice of India Dipak Misra remarked,

“Leave should have been taken from us. The manner in which the order has been passed is very very disturbing.”

Today, the Supreme Court has stayed the NCLT Order.