NCLAT Disposes Of Dot Petition In opposition to Videocon Decision Plan

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NCLAT had requested the collectors to provoke recent sale of Videocon, a client durables firm manufacturing merchandise starting from air-conditioners to washing machines, for restoration of their unpaid dues of Rs 64,637.6 crore.

The Nationwide Firm Regulation Appellate Tribunal (NCLAT) on Tuesday disposed of a petition filed by the Division of Telecommunications difficult the Rs 2,962-crore takeover bid by Anil Agarwal’s Twin Star Applied sciences for Videocon Industries.

A two-member bench noticed that the appellate tribunal earlier this month had already put aside the June 8 order handed by the Mumbai bench of the Nationwide Firm Regulation Tribunal (NCLT) approving Twin Star’s bid and remanded the matter again to the Committee of Collectors (CoC) of Videocon.

“Counsel for the events agreed that this Attraction be additionally disposed off when it comes to the judgment dated 05.01.2022. The Attraction is allowed when it comes to the judgment dated 05.01.2022 ,” the NCLAT stated.

Earlier on January 5, the NCLAT put aside the NCLT order after observing that the approval to the takeover plan was “not in accordance with” Part 31 of the Insolvency and Chapter Code (IBC) and quashed “the approval of Decision Plan by the Committee of Collectors (CoC) in addition to Adjudicating Authority (NCLT)”.

NCLAT had requested the collectors to provoke recent sale of Videocon, a client durables firm manufacturing merchandise starting from air-conditioners to washing machines, for restoration of their unpaid dues of Rs 64,637.6 crore.

The appellate tribunal’s order had come over petitions filed by dissenting collectors Financial institution of Maharashtra, SIDBI and IFCI Ltd.

The Division of Telecommunications (DoT) had additionally challenged the NCLT order earlier than the appellate tribunal and submitted that defaulting telecom corporations can’t be permitted to wriggle out of their legal responsibility by the triggering of the company insolvency decision course of.

One of many group corporations, Videocon Telecommunications, to be able to keep on enterprise as per the licence settlement for Unified Licence (Entry Providers) had secured dues with as many as 131 financial institution ensures from SBI in favour of DoT to the tune of Rs 881.92 crore.

The state-owned lender’s ensures, nevertheless, have “illegally” not been allowed to be invoked as a consequence of pending proceedings earlier than the NCLT, the DoT had submitted

(PTI)


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