An appellate tribunal has accepted a plea by Venugopal Dhoot, former chairman and managing director of Videocon Group, challenging the approval of Anil Agarwal’s Twin Star Technologies to bid for 13 of its group companies.
The National Company Law Appellate Tribunal (NCLAT) has issued notices to the resolution professional, lenders and Twin Star Technologies directing them to respond by September 17.
Read also: Inside Videocon’s epic bankruptcy saga
“We have considered the arguments of various parties. We allow the appeal and the respondents are directed to file their reply by September 15, 2021 and thereafter, the rejoinder, if any, is filed by September 17, 2021. NCLAT.
A two-member bench of Justices JK Jain and AK Mishra has listed the matter for hearing on September 20, 2021.
Mumbai Bench of the National Company Law Tribunal on 9 June (NCLT) had approved ₹Twin Star Technologies bid for Rs 2,962 crore for 13 Videocon group companies.
However, the NCLT order on July 19 was stayed by the NCLAT on petitions filed by two disgruntled creditors of the Videocon group – Bank of Maharashtra and IFCI Ltd. The appellate tribunal had directed to maintain “status quo”.
Earlier this week, on September 7, the NCLAT had stayed the next date of hearing in the matter till September 20.
Dhoot, in his petition filed before the NCLAT, had sought quashing of the order passed by the Mumbai bench of the NCLT and instead directed the lenders to consider it. ₹31,789 crore settlement plan submitted by him under Section 12 of the Insolvency and Bankruptcy Code (IBC).
In the petition, Dhoot has questioned the role of the resolution professional. The former promoter of Videocon said that he should have mentioned the overseas oil and gas assets of Videocon Group in the information memorandum (tender form) for consideration for all the bidders.
Dhoot had also requested the NCLT order which had allowed the cancellation of the resolution plan of Twin Star Technologies and a new resolution plan with oil and consumer durable assets to be considered.
During the hearing held on September 10, all the parties opposed Dhoot’s claims.
“Abhishek Manu Singhvi, senior counsel for the resolution applicant (Twin Star) has submitted that the appellant (Dhoot) voided the company and whose motion under 12A of the Code was rejected by a higher majority of the CoC. His motion It was due to be repaid in 15-20 years.”
Whereas the CoC said that the proposal of Twin Star was approved with 95 per cent majority and added that some financial creditors and guarantors and shareholders are approaching for cancellation of the approved resolution plan.
Under section 12A of the IBC, the tribunal can allow withdrawal of an ongoing insolvency process against a company, subject to certain conditions. Such application is filed by the company with the approval of 90 per cent voting share of the committee of creditors.
Videocon Industries and its 12 group companies had total accepted claims ₹64,838.63 crores.
Earlier, the NCLT in its 47 page long judgment, while approving Twin Star Technologies ₹2,962.02 crore had seen the creditors of debt-ridden Videocon Industries Ltd take a cut of around 96 per cent on their loans and the bidder is “paying almost nothing”.
The NCLT had observed that the resolution plan was giving 99.28 per cent to operational creditors, which it had sarcastically indicated as “hair cut or toner, total shave”.
(with PTI input)
Don’t miss a story! Stay connected and informed with Mint.
download
Our App Now!!
.