The Supreme Court today stayed the December 8th order of the National Company Law Tribunal allowing the Centre to take over the management of embattled realty firm Unitech Ltd.

Unitech shares opened at Rs 7.62 against Tuesday's close of Rs 7.69 on the BSE. Unitech traded between Rs 7.90 and Rs 6.43 in morning trade. At about 12.15 pm, Unitech shares were down 12.61 per cent or Rs 0.97 at Rs 6.72.

A Bench comprising Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud considered the statement of Attorney General K K Venugopal that the Government should not have moved the National Company Law Tribunal (NCLT) when the apex court was seized of the matter.

The apex court, which had yesterday expressed unhappiness over the Centre’s move to approach the NCLT, said the stay on the company law tribunal’s order would meet the ends of justice.

The top court had yesterday asked the Centre why it had not taken its permission to move the NCLT for suspension of Unitech directors and their substitution by government nominees.

Senior lawyers Mukul Rohatgi and Ranjit Kumar, appearing for the real estate firm and its promoters, had said that the apex court had given time to Unitech chief Sanjay Chandra to negotiate from jail to sell their assets to generate Rs 750 crore for refunding money to home buyers but, in the meantime, the Centre has approached NCLT.

Rohatgi had claimed that the NCLT did not issue a notice to the firm and its directors and passed the interim order, which was virtually a final order, and allowed the Centre to take over the firm. Earlier, the apex court had agreed to hear on Wednesday the appeal of Unitech challenging the NCLT order allowing the Centre to take over its management.

The NCLT, on December 8 , had suspended all the eight directors of the realty firm over allegations of mismanagement and siphoning of funds and had authorised the Centre to appoint its 10 nominees on the board. The NCLT order had come after the Centre moved the panel with a view to protecting the interests of nearly 20,000 home buyers.

Unitech alleged that the takeover of the company's management by the Centre would make it difficult for them to deposit Rs 750 crore as directed by the apex court to safeguard the interests of homebuyers. Sanjay Chandra, head of the embattled real estate group, was asked on October 30 by the apex court to deposit Rs 750 crore with it by December end for the sake of the homebuyers.

The apex court had on October 30 said Chandra will be granted bail only after the real estate group deposited money with its registry by December end.

Chandra’s lawyer had told the apex court that since he has been asked to appear in various courts, consumer forum and commissions on a regular basis, efforts to arrange money for the homebuyers were hampered. Hence, the production warrants issued against him by various judicial bodies be stayed for 15 days.

He had also said that the accused be allowed to appear in courts through his lawyers. The plea was declined. The apex court had also clarified that its earlier order directing all courts below not to take any coercive action against the accused for the timebeing would also be made applicable on all forums, including state and national consumer commissions.

The top court had earlier directed the jail authorities to facilitate Chandra’s meeting with his company officials and lawyers so that he could arrange money to refund money to the homebuyers as well as for completing the ongoing housing projects. It had said if any proceedings were pending against Chandra and the company, those may continue and the final order be passed but no coercive steps be taken to execute those orders.

Chandra is seeking interim bail from the apex court after the Delhi High Court on August 11 had rejected the plea in a criminal case lodged in 2015 by 158 home buyers of Unitech projects’ -- ‘Wild Flower Country’ and ‘Anthea Project’ -- in Gurugram.

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