Shivangi Prakash –
Published on: August 2, 2021, at 9:36 AM
Venugopal Dhoot, former promoter of Videocon Group, filed a petition in the NCLAT, challenging an order of the insolvency approving Rs 2,962 crore takeover bid by Anil Agarwal’s Twin Star Technologies for 13 debt-ridden group companies.
In his plea to the National Company Law Appellate Tribunal (NCLAT) on Saturday, Dhoot named three respondents: Videocon Group resolution professional Abhijit Guhathakurta, the committee of creditors (CoC), and Twin Star Technologies.
Dhoot has asked the NCLAT to overturn the ruling of the NCLT’s Mumbai Bench and urge the lenders to consider a Rs 31,789 crore settlement proposal he presented under Section 12 of the IBC.
He questioned the involvement of Resolution Professional claiming that he should have identified the Videocon Group’s international oil and gas assets in the information memorandum (Tender Form) to all bidders, and hence no valuation was considered.
“All assets owned by Videocon Group, particularly oil and gas assets owned by Videocon Industries are not included in Information Memorandum and no valuation thereof has been considered,” he said, adding RP and lenders “were wrong to ignore order of NCLT to treat and include foreign oil and gas assets of Videocon as assets of Videocon Industries Ltd”.
Dhoot also said in the petition, “It is submitted that a similar proposal was submitted by Appellant in the CIRP of Corporate Debtor under Section 12A of the Code, however, the CoC being unbending and irrational has rejected the proposal of Appellant to the tune of Rs 31,789 crore and has accepted the Resolution Plan of Twin Star which provides payment of only Rs 2,962 crore.”
It claimed that Twin Star’s resolution plan is an example of failed legislation since it fails to set any benchmarks or tests in the face of CoC’s “arbitrary and unreasonable” ruling.
The tribunal can allow an ongoing insolvency process against a corporation to be withdrawn under Section 12A of the IBC if certain circumstances are met.
If such applications are filed by the companies with the permission of 90 per cent voting share of the committee of creditors. In several high profile, corporate insolvency resolution cases such as Essar Steel and DHFL, 12A plea has been rejected.
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