National Company Law Tribunal NCLT to Unitech Group : India Govt Makes Use of Companies Act to Guard ‘Public Interest’. In both cases, the powers vested with it by the new Companies Act has proved to be useful in defending the ‘public interest’
Hours after National Company Law Tribunal NCLT debarred its 10 administrators, Unitech in these days approached the tribunal contending that the federal government had no longer instructed the discussion board of Supreme court bar on any coercive motion in opposition to the organization.
Unitech Group: In a excessive drama at the country wide enterprise legislation Tribunal (NCLT), Unitech first suffered a jolt when its 10 directors had been suspended through the tribunal, which allowed executive to nominate their replacements.
Ramesh Chandra-led Unitech, approached the National Company Law Tribunal NCLT in the afternoon saying that no “coercive steps for execution” can be taken in view of a November 20 order of the Supreme court docket.
Previous in the day, Unitech was once dragged to the tribunal via the government looking for to take over the functioning of the corporation alleging mismanagement and siphoning of dollars via the management.
Previously fortnight, the government has made one other excessive-profile intervention in the company sector with the merger of NSEL with its father or mother enterprise, FTIL. In both instances, the powers vested with it by way of the brand new businesses Act has proved to be valuable in defending the general public curiosity. At the same time the Act wrote in these provisions, it used to be debated whether or not the government would drum up the confidence to invoke the clauses.
The company, as soon as India’s 2d-biggest real property developer, didn’t immediately respond to an e mail looking for comment despatched to Puneet Bansal, who is listed on Unitech’s website as a media contact. Calls to a manufacturer helpline listed on their website didn’t connect. The corporation’s shares were unchanged at 6.10 rupees at 10:09 a.m. In Mumbai.
The federal government has additionally appealed to the tribunal to restrain the existing directors and CFO from selling, mortgaging, creating a cost or curiosity on their individual residences unless an investigation into allegations of siphoning and diversion of cash by using the company is complete, according to the petition.
Of direction, it is for the National Company Law Tribunal NCLT to come to a decision whether the federal government’s plea has deserves, but from right here, it is really evident that there can be a reference to the tribunal again over chapter provisions. With the board having been replaced by means of then, the insolvency specialists shall be coping with the federal government as an interested entity, defending the general public interest. How the government manages to navigate between the interests of creditors, flat owners and the attendant chance of corruption in handling real estate houses worth few hundred crores shall be an intriguing episode.