The National Company Law Tribunal (NCLT) has declared former Videocon Industries promoter Venugopal Nandlal Dhoot bankrupt after admitting a petition filed by State Bank of India (SBI) to recover dues
NEW DELHI — The National Company Law Tribunal (NCLT) has declared former Videocon Industries promoter Venugopal Nandlal Dhoot bankrupt after admitting a petition filed by State Bank of India (SBI) to recover dues of more than INR 12,668 crore arising from personal guarantees furnished for loans extended to Videocon group companies.
A Mumbai bench of the tribunal admitted SBI's petition under Section 123 of the Insolvency and Bankruptcy Code (IBC), paving the way for bankruptcy proceedings against Dhoot as a personal guarantor.
The order follows the failure of his personal insolvency resolution process after creditors rejected a proposed repayment plan.
The tribunal appointed insolvency professional Asish Narayan as bankruptcy trustee and directed that Dhoot's estate be vested in him for administration and distribution among creditors.
According to the PSU lender, Dhoot's outstanding liabilities stood at INR 12,668.06 crore, including interest and penalties as of September 30.
The dues relate to personal guarantees provided by Dhoot for term loans, working capital facilities and borrowings extended to Videocon Group entities, including Videocon Telecommunications Ltd.
The lender had invoked the guarantees in February 2018 following loan defaults by the group.
During the personal insolvency proceedings, Dhoot proposed a repayment plan offering INR 600 crore over three years through a proposed real estate development project in Siliguri. The amount represented less than 1 per cent of the admitted claims.
However, the resolution professional flagged concerns over the proposal and said that it was dependent on future project approvals and uncertain cash flows and did not provide any upfront payment.
Creditors subsequently declined to approve the plan.
The tribunal terminated the insolvency resolution process in July this year and allowed creditors to initiate bankruptcy proceedings.
SBI filed its bankruptcy petition within the prescribed timeline thereafter.
Moreover, the bankruptcy trustee has been directed to invite claims from creditors, take control of Dhoot's estate and submit a preliminary report to the tribunal within 90 days.