Videocon case: NCLAT refuses to halt insolvency against Dhoot brothers
New Delhi: The National Company Law Appellate Tribunal (NCLAT) has dismissed appeals filed by Rajkumar Nandlal Dhoot and Pradeep Nandlal Dhoot against the initiation of personal insolvency proceedings over defaults by Videocon Industries, for which they stood as personal guarantors.
A two-member NCLAT bench comprising Chairperson Justice Ashok Bhushan and Member (Technical) Barun Mitra upheld the June 2024 orders of the Mumbai bench of the National Company Law Tribunal (NCLT), which had admitted State Bank of India’s (SBI) plea under Section 95 of the Insolvency and Bankruptcy Code to initiate insolvency proceedings against the brothers in their personal capacity.
The appellate tribunal also rejected their contention that SBI’s petitions were barred by limitation.
“We do not find any good ground to interfere with the impugned orders dated June 4, 2024, and June 14, 2024. Both the appeals are dismissed,” the bench said.
SBI had issued a demand notice of Rs 5,353.78 crore following defaults by Videocon Industries, the principal borrower. The company had availed a rupee term loan and a working capital facility from SBI in May 2010, and the Dhoot brothers executed personal guarantee deeds in August 2012.
After defaults, SBI initiated corporate insolvency proceedings against Videocon Industries in June 2018. It also issued demand notices in February 2018 seeking Rs 3,171.37 crore under the term loan agreement and Rs 795.57 crore under the working capital consortium agreement from the guarantors.
Following non-payment, SBI moved the NCLT under Section 95.
A resolution professional recommended initiation of personal insolvency proceedings, which the NCLT admitted, prompting the brothers to approach the NCLAT.
