NCLAT admits Venugopal Dhoot’s petition against Anil Agarwal’s Twin Star takeover bid

The Nationwide Firm Regulation Appellate Tribunal (NCLAT) has admitted the petition filed by former Videocon group Chairman and Managing Director Venugopal Dhoot difficult the sooner order of the insolvency court docket NCLT approving Rs 2,962 crore takeover bid for its 13 group firms by Anil Agarwal’s Twin Star Applied sciences. The appellate tribunal has issued notices to the decision skilled, lenders and Twin Star Applied sciences directing them to file a reply by September 17.

“Now we have thought of the submissions of assorted events. We admit the attraction and the respondents are directed to file their reply by September 15, 2021 and, thereafter, the rejoinder, if any, be filed by September 17, 2021,” mentioned the NCLAT.

“Let the matter be listed ‘for listening to’ on September 20, 2021,” added a two-member bench comprising Justice J Ok Jain and A Ok Mishra.

Earlier on June 9, the Mumbai bench of the Nationwide Firm Regulation Tribunal (NCLT) permitted Rs 2,962 crore takeover bid by Twin Star Applied sciences for the 13 firms of the debt-ridden Videocon group.

Nevertheless, the NCLT order was stayed by the appellate tribunal on July 19 over the petitions filed by two dissatisfied collectors of the Videocon Group –

and IFCI Ltd and had directed to take care of “establishment ante”.

Earlier this week, on September 7, the NCLAT has prolonged the keep until September 20, the following date of listening to within the concern.

Dhoot, in its plea filed earlier than the NCLAT has requested to put aside the order handed by the Mumbai bench of the NCLT and to direct the lenders to think about Rs 31,789 crore settlement plan submitted by him beneath part 12 of the Insolvency & Chapter Code (IBC).

Within the petition, Dhoot has questioned the function performed by the Decision Skilled and mentioned that he ought to have talked about the international oil and gasoline property of Videocon Group within the Info memorandum (Tender Kind) to all of the bidders and therefore no valuation was thought of.

He had additionally requested NCLT’s order approving Twin Star Applied sciences’ decision plan to be cancelled and a contemporary decision plan to be thought of with Oil and Client Sturdy property.

Through the listening to, which came about on September 10, all events opposed Dhoot’s claims.

“Abhishek Manu Singhvi, Senior Counsel for Decision Applicant (Twin Star), has said the Appellant (Dhoot) drove the corporate to zero and whose proposal beneath 12A of the Code was rejected by a really excessive majority of CoC. Their proposal was for compensation in 15-20 years,” the NCLAT order mentioned.

Whereas the CoC said that Twin Star’s proposal was permitted with 95 per cent majority and mentioned few monetary collectors and the guarantors and shareholders are approaching for nullifying the permitted Decision Plan.

Below Part 12A of the IBC, the tribunal can allow withdrawal of an ongoing insolvency course of towards an organization topic to sure situations. Such utility is filed by the corporate with the approval of 90 per cent voting share of the committee of collectors.

Videocon Industries and its 12 group firms had a complete admitted claims of Rs 64,838.63 crore.

Earlier, In its 47-page-long judgement, NCLT whereas approving Twin Star Applied sciences’ Rs 2,962.02 crore-bid had noticed collectors of debt-ridden Videocon Industries Ltd might be taking practically 96 per cent haircut on their loans and the bidder is “paying nearly nothing”.

The NCLT had noticed that the decision plan is giving 99.28 per cent to the operational collectors, which it sarcastically hinted to be as a “Hair reduce or Tonsure, Complete Shave”.