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SUDHANSU JYOTI MUKHOPADHAYA, J.

The Union of India moved a Petition under Section 401/397/398 r/w Section 408 of the Companies Act, 1956 (now Section 241(2) r/w Section 242 of the Companies Act, 2013). It also sought relief under Section 388B of the Companies Act, 1956 for appointment of the Government Nominated Directors and the control of the affairs and management of the Company Megacity Bangalore Developers & Builders Limited (MBDBL).

2. The National Company Law Tribunal (hereinafter referred to as the 'Tribunal') by impugned order dated 14th March, 2019 came to a considered opinion that Union of India made out a case so as to interfere in the affairs of the Company with suitable orders so as to protect the property of the Company; to protect the interest of stakeholders of the Company and to ensure that the Company follow statutory compliances etc. The Tribunal also formed opinion that the existing management should not be continued and should be replaced by the New Directors to be nominated by the Union of India as per law. In the result, the following directions was issued: -

"18 In the result, C.P. No.02 of 2014 (T.P. No.300 of 2017) is disposed of with following directions:
a. We hereby declared that the Respondent Nos.2 to 5 are hereby ceased to be the Directors of the R-1 Company and they are debarred from taking/ involving any action with regard to the affairs of Company with immediate effect. Consequently, Union of India is permitted to appoint Directors to R-1 Company M/s. Megacity Bangalore Developers & Builders Limited as expeditiously as possible.