IN RE Vs. UNITECH LTD

JUDGEMENT

(1.) In furtherance of the directions given on 5th August, 2016 and pursuant to the same, two Directors of the respondent Company are present viz. Shri Ramesh Chandra and Shri Ajay Chandra. It is informed that Shri Sanjay Chandra, also a joint MD, is not present as he is required to be present in the 2G case before the Special Sessions Court for facing trial. Learned Sr. Counsel for the respondent therefore prays for his exemption. He is duly exempted. Let the order sheet of 8 August confirming the presence of Mr. Sanjay Chandra in the Sessions Court be placed on record.

(2.) This Bench is apprised by the learned Senior Counsel appearing for the respondents, that due to financial crisis they are unable to pay back the deposits of any investor for the time being. Today, as many as 126 applications claiming a sum of Rs. 22,15,95,430/- towards deposits made and interest payable thereon are pending before us for consideration. The learned Senior Counsel has argued that the same are not maintainable as the provisions of Section 73 of the Companies Act 2013 came into operation only on being notified on 1.4.2014.

(3.) Since the respondent company has not taken any deposits on or after the cutoff date of 01.04.14 and all the deposits have been taken prior to the cutoff date as such these applications u/s. 73(4) of the Act cannot be entertained by this Bench. Learned Sr. Counsel has further argued that in such a situation, the only recourse open to the various depositors is to pursue their claims before the Civil Courts. It is pertinent to note that the respondents with a view to seeking extension of time for the very same deposits had approached the erstwhile CLB under the provisions of Section 74(2) of the Companies Act 2013, which was dismissed vide order dated 04.07.2016 due to the non-compliance of their own undertaking given in the affidavit to repay as stated. However, it is now proposed on behalf of the Respondents, that in order to show their bonafides, they are ready and willing to deposit the title deeds of 6 properties situated in Western and Southern parts of India which are unencumbered and which they have been trying to sell to meet their financial liabilities, even when a sales committee was in existence prior to its disbanding vide order dated 04.07.2016. It is submitted that these properties will fetch at the very least Rs. 500 crores.