The Supreme Court (SC) has directed the National Company Law Appellate Tribunal (NCLAT) to decide the Videocon Industries Ltd resolution matter on the next hearing date on September 7.
Hearing a plea by Twin Star Technologies Ltd today against the NCLAT stay on its Rs 2,962 crore resolution plan for Videocon, the SC referred the matter back to the appellate tribunal in order to avoid further delays in the insolvency resolution, which has been lingering for over three years.
In June this year, the NCLT approved TSTL's offer for Videocon Industries Ltd, resulting in almost 95 per cent haircut for lenders against the approved claims of about Rs 62,000 crore. TSTL is a fully owned subsidiary of Anil Agarwal's Vedanta Group.
Dissenting creditors Bank of Maharashtra, IFCI, Morgan Securities, SIDBI and ABG Shipyard moved appellate authority, National Company Law Appellate Tribunal (NCLAT), with a plea that the resolution plan approved by the NCLT is close to the liquidation value of the company.
While smaller lenders dissented against the resolution plan offered by TSTL, the larger banks in the committee of creditors (CoC) were in favour of it.
The NCLAT stayed the resolution plan last month against which TSTL moved the Supreme Court. Hearing the matter today, the SC said it "understands the pain" of resolution applicants.
"While the appellate body can scrutinise a plan, a blanket ban cannot be imposed when it has passed the commercial wisdom of lenders and judicial scrutiny of NCLT," Senior Counsel Gopal Jain, who represented TSTL, told Business Today.
It may be noted that Venugopal Dhoot, the former promoter of Videocon Industries, which had also put in a bid wants the NCLAT to direct lenders to consider a resolution plan proposed by him under section 12A of the Insolvency and Bankruptcy Code.
The section allows a committee of creditors to accept a bid from a beleaguered promoter with above 90 per cent vote share. Dhoot has made an offer of Rs 31,789 crore.
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