SC lifts stay on Unitech cases

NEW DELHI: The Supreme Court has set the stage for reopening of all the pending cases against real estate firm Unitech and its directors before different courts and forums by lifting a stay order issued by the Delhi High Court.

“As an interim measure, it is directed that the proceedings pending before all the forums shall continue,” a Supreme Court bench of Justices Dipak Misra and Amitava Roy said in an interim order issued on Thursday. The next date of hearing is set for January 11, 2017. The Delhi High Court had on September 2 stayed all proceedings pending against Unitech, barring all Supreme Court orders, or which may be filed against the company or its directors before different forums.

It had also agreed upon a scheme of compromise and arrangement under Section 391 of Companies Act as submitted by a group of homebuyers and asked Unitech to hold meetings with homebuyers. The court asked the builder to set up escrow accounts to allow it to complete its pending projects.

The Supreme Court on November 18, however, stayed all the meetings between homebuyers and the company on the proposed scheme of compromise to complete the pending projects. Lawyer ML Lahoty, who represented 111 buyers of Gurgaon’s Unitech Residences project in the court, argued, “Total immunity was given to Unitech by the company judge from past, present and future proceedings. This is a classic case of abuse of judicial powers.”

Unitech in a statement said, “We reiterate that Unitech Ltd is committed towards completion of the projects and has opened escrow accounts and increased construction activity in the recent quarters.”

Around 40 cases against Unitech were found to be pending in the Delhi High Court, while a search on the website of the National Consumer Disputes Redressal Commission (NCDRC) revealed around 929 entries for Unitech, according to a report in ET on September 6.

Unitech’s consolidated net loss narrowed to Rs 13 crore during the quarter ended September from Rs 65.70 crore in the year-ago period. The company’s consolidated net debt as of September 30 was Rs 5,818 crore.

Credits ET Realty

Leave a Reply

Your email address will not be published. Required fields are marked *