The National Company Law Appellate Tribunal (NCLAT) on Wednesday dismissed appeals filed by Devas Multimedia employees, representing shareholders and the ex-management, seeking to stay the May 25 order of the National Company Law Tribunal (NCLT), Bangalore, that directed initiation of the liquidation process for Devas Multimedia.
“This tribunal has elaborately discussed the defence raised by Devas in the winding-up petition. This Tribunal believes that the defence raised by Devas is not substantial, and Devas deserves to be wound up on the grounds of Section 271(c) of the Companies Act, 2013. Accordingly, the finding of the National Company Law Tribunal needs no interference from this appellate tribunal, and both the appeals deserve to be dismissed,” the NCLAT said in its 375-page order.
On a petition filed by Antrix Corporation, an entity dealing in commercial business of spectrum under the control of the Department of Space and Indian Space Research Organisation, the NCLT directed the initiation of the liquidation process for Devas Multimedia on account of fraudulent conduct.
“The incorporation of Devas itself was with fraudulent motive and unlawful object to collude and connive with then officials of Antrix and to misuse/abuse process of law, to bring money into India and to divert it under dubious methods to foreign countries,” the NCLT had ordered.
The NCLAT’s Wednesday order also upheld the stand of Antrix and the Union of India that Devas was incorporated for fraudulent conduct.
