TMI Blog2020 (1) TMI 1185X X X X Extracts X X X X X X X X Extracts X X X X ..... stions contained in the previous order, the Union government has indicated that it is prepared to revisit the proposal and to appoint nominee directors to take over the management of Unitech Limited, subject to the following stipulations: (i) That the Government will not infuse any funds for the completion of pending projects; (ii) That this Hon ble Court, to ensure a period of calm, will direct a moratorium for 12 months; (iii) That this Hon ble Court may appoint a retired Judge of the Supreme Court for supervising the resolution framework finalized by the proposed Board of Directors; (iv) That this Hon ble Court may allow the proposed Board of Directors to appoint key managerial persons (KMPs, on need based), professionals (legal, insolvency, financial advisors, real estate professionals, etc.) for assisting the Government appointed Board and payment of requisite professional fees including the legal fees thereof from the Company s account; (v) That this Hon ble Court may direct the promoters and the present management of the company to co-operate with the proposed Board of Directors; (vi) That this Hon ble Court may direct the Forensic Auditor, Asset Reconstru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... properties of Unitech Limited and construction of fresh buildings which has resulted in the possession of 514 units being handed over to the purchaser; (iv) The forensic auditors M/s Grant Thornton have expressed their willingness to support the new management on issues pertaining to the completion of projects, assets monetization, management of shareholders interface and regulatory compliance, as a supervisory management agency; (v) The raising of funds from home buyers should be only when they fall due under the builder buyer agreements or allot- ment letters; (vi) The newly constituted Board should also be permitted to mon- etize encumbered assets if feasible; (vii) At the present stage, the funds deposited in the Registry of this Court should not be released until a resolution framework plan has been finalized by the Board and is placed be- fore this Court; (viii) Any action in future for liquidation or for a resolution outside the framework of the Insolvency and Bankruptcy Code should be only undertaken with the approval of this Court; and (ix) The newly constituted board should consider project viability and based on it, a decision may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in possession of the premises which are agreed to be sold to them in the foreseeable future. The Union government has submitted that it would not be in a position to infuse funds for the completion of the pending projects. The learned Attorney General has submitted that though a Stressed Assets Fund has been set up by the Union government, the policy of the government is not to make any funds available for matters where litigation is pending. We are not dilating on this aspect at this stage. The issue can be taken up at the appropriate stage. At this stage, it would be appropriate if the Board of Directors constituted by the Union government submits to this Court a report within a period of two months suggesting the resolution framework. We issue the following directions: (i) The existing Board of Directors of Unitech Limited is superseded with immediate effect in order to facilitate the taking over of management by the new Board of Directors constituted in terms of the proposal submitted by the Union government; (ii) The Union government has proposed that the Board of Directors shall consist of seven persons, whose names have been suggested in the proposal, namel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld explain and clarify its position; (x) The order of moratorium shall not foreclose the statutory entitlement of the EPFO to enforce the claims for the payment of EPF and other related statutory dues in accordance with law against the erstwhile management; (xi) The implementation of existing projects under the auspices of the Justice Dhingra Committee will continue pending further orders. Further directions to facilitate these projects being brought under the control of the newly constituted Board of Directors shall be issued by this Court after the resolution framework is submitted; (xii) The newly constituted Board of Directors would be at liberty to take a comprehensive view of all pending and other projects and to make such proposals as would appear to them to be proper; (xiii) We have not interdicted the implementation of any project by the asset reconstruction companies, at this stage. (xiv) The proposal submitted by the Union government is, hence, accepted. Besides the directions issued above in regard to the moratorium, we accept the specific requests contained in clauses (iv), (v), (vi), (vii), (ix) and (x) of the proposal of the Union government and is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m refund to possession are permitted to do so. In order to facilitate this, the home buyers shall register their options for seeking possession instead of refund with the amicus curiae. However, the home buyers shall be informed that those among them who seek to alter their option to seek possession will be required to deposit in this court the monies which are payable against the offer of possession. These home buyers will be required to pay the balance payable on account of their allotted units at the time when the offer of possession is made. Those among the home buyers who have already received refunds but now seek possession shall be required to deposit the refunds in the Registry of this Court, together with interest at 9% per annum payable with effect from the date of disbursement until the date of deposit in the Registry of this Court. The amicus curiae shall prepare a list of such home buyers and share it with the Registry to facilitate the process. Ex-employees The amicus curiae states that pursuant to the web portal being opened to receive fresh claims of the employees, 257 employees have registered their claims. The amount which has been claimed by the employ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st of which shall be payable on or before the end of February 2020 and the second, on or before 31 March 2020, together with interest at the rate of 12% per annum. The payments to be made shall be inclusive of the further deposits which fall due as per the schedule prescribed in the MOU. Mr Rajiv Dutta, learned senior counsel, submits that the payments have fallen overdue because there were certain difficulties in the transfer of land from the affiliates of M/s Unitech Limited to the purchaser. The amicus curiae has submitted before the Court that the modalities for the transfer of land would be duly completed and is being looked into by Justice Dhingra Committee. Sale of Unitech Power Transmission Limited to Sterling and Wilson Pvt Ltd The report of the amicus curiae indicates that M/s Sterling and Wilson Pvt Ltd has been seeking repeated extensions for making payments despite their initial commitment to make the payments by 8 October 2019. The Registry shall issue notice to M/s Sterling and Wilson Pvt Ltd. The address for service shall be provided by the amicus curiae, within the course of the week. Notice shall be returnable in three weeks. IA Nos 31375-376 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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