The National Company Law Appeals Tribunal (NCLAT) on Wednesday dismissed appeals filed by Devas Multimedia employees, representing shareholders and ex-management, seeking to suspend the May 25 order of the National Law Court of Companies (NCLT), Bangalore, which ordered the initiation of the liquidation process of Devas Multimedia.
“This court has discussed at length the defense raised by Devas in the liquidation petition. This Court considers that the defense raised by Devas is not substantial, and Devas deserves to be liquidated on the basis of Article 271 (c) of the Companies Act of 2013. Accordingly, the conclusion of the National Court corporate law does not need any interference from this appellate tribunal, and both appeals deserve to be dismissed, ”NCLAT said in its 375-page order.
On a petition filed by Antrix Corporation, a spectrum business entity under the control of the Department of Space and the Indian Space Research Organization, the NCLT ordered the start of the process of liquidating Devas Multimedia for fraudulent conduct.
“The incorporation of Devas itself was with fraudulent motive and unlawful object of collusion and connivance with the then Antrix officials and to abuse / abuse the law, to bring money into India and divert it using questionable methods to foreign countries, ”the NCLT had ordered.
Wednesday’s NCLAT order also confirmed Antrix and the Union of India’s position that Devas was incorporated for fraudulent conduct.