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NCLAT directs Unitech to Repay the Amount to its Deposit Holders with Interest [Read Order]

Unitech - NCLAT - Taxscan

The National Company Law Appellate Tribunal (NCLAT) has directed the Unitech Limited to repay the amount to its deposit holders with the interest rates.

Unitech Limited, which is one of India’s second-largest real estate investment company has directed the company to repay the amount to its deposit holders pendent lite along with the future interest @12.5% per annum from the date of maturity of the FDRs. The National Company Law Appellate Tribunal (NCLAT) has apart from imposing the tax rate, also imposed the cost of INR 50,000/- to each of the deposit holders.

The respondent company defaulted in the payment of various deposit holders. For instance, Ms. Sunita Bansal bought FDRs from the respondent company for the time period of three years and its maturity date was in 2016. The company defaulted in various such payments and as a consequence, the deposit holders aggrieved by the act of the respondent company filed a petition in National Company Law Tribunal (NCLT) and the tribunal ordered in the favor of the company. Aggrieved by such order the deposit holders knocked the doors of  National Company Law Appellate Tribunal (NCLAT).

The issue raised in this case was whether the deposit holders were eligible for the repayment or not?

The National Company Law Appellate Tribunal (NCLAT) comprising of the Judicial Member, Justice Jarat Kumar Jain; Technical Member, Mr. Balvinder Singh, and Dr. Ashok Kumar Mishra were of the opinion that the primary object of law is to protect the interest of the deposit holders and while upholding the principle of justice and equity directed the company to repay the amount to its deposit holders pendent lite along with the future interest @12.5% per annum from the date of maturity of the FDRs. The National Company Law Appellate Tribunal (NCLAT) has apart from imposing the tax rate, also imposed the cost of INR 50,000/- to each of the deposit holders.

To Read the full text of the Order CLICK HERE
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