The National Company Law Tribunal has partly allowed the relief sought by Union of India under Section 388B, 397/398 of the Companies Act, 1956 R/w 406/408 of the Companies Act, 1956 in the matter of Union of India through Ministry of Corporate Affairs and M/s. Maytas Infra Limited (now IL&FS Engineering and Construction Company Limited) & others.
The NCLT has duly noted that with respect to first relief, there is no reason to impose restrictions as per Section 388B (1) (a) of The Companies Act, 1956 while the second relief was already granted by Hon’ble erstwhile Company Law Board on March 5, 2009, by directing the Central Government to appoint four persons of eminence as nominee Directors on the Board of Maytas Infra Limited under Section 408 of The Companies Act, 1956.
As per the said orders, the Union of India had sought to invoke the provisions of Section 388B(1)(a) of the Companies Act, 1956, and to declare that none of the directors shall be eligible for appointment as Directors in any other company, and to prevent further acts of fraud, continuous misfeasance, breach of trust to the stakeholders of the company, persistent neglect of the obligations and functions to be discharged by the Board, and in the public interest and prays that Company Law Board may empower the Central Government to appoint 10 nominee directors on Board of the company u/s 408 of Companies Act, 1956. The disclosure was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulation, 2015.
