DoT moves NCLAT to revoke resolution plan for Videocon Group
The Department of Telecommunications (DoT) has moved the insolvency appellate tribunal NCLAT against the NCLT order approving the consolidated resolution plan for 13 companies of Videocon Group, including Videocon Telecommunications.
The DoT, in its petition, has requested the appellate tribunal to set aside the order passed by the Mumbai bench of the National Company Law Tribunal (NCLT) on June 8, 2021 allowing the Rs 2,962-crore takeover bid by Anil Agarwal’s Twin Star Technologies.
The DoT has submitted before the NCLAT that defaulting telecomcompanies cannot be permitted to wriggle out of their liability by the triggering of the corporate insolvency resolution process.
A three-member bench of the NCLAT said the appellate tribunal has already stayed the NCLT order on July 19, 2021 by granting a “status quo ante” to be maintained and the resolution professional will continue to manage the affairs of Videocon Industries according to the provisions of the Insolvency & Bankruptcy Code.
“In view of the submissions made by the Appellant/Applicant (DoT) and the impugned order on stay on near similar grounds, there is no need to further go into details,” said NCLAT.
The NCLAT has directed to list DoT’s appeal for hearing on January 11, 2022.
“The Respondents are directed to file ‘Reply-affidavit' within the next two weeks and rejoinder, if any, may be filed within a week thereafter,” the NCLAT order passed on December 8, 2021 said.
The respondents in the matter include Videocon Industries and Videocon Telecommunications.
Videocon Telecommunications had secured the dues with as many as 131 bank guarantees from SBI in favour of the DoT to the tune for Rs 881.92 crore.