The National Company Law Appellate Tribunal (NCLAT) on Wednesday set aside an order of the Mumbai bench of NCLT approving Anil Aggarwal-led Twin Star Technologies’ bid for Videocon Group.
A two-member bench of Jarat Kumar Jain and Ashok Kumar Mishra said provisions of the Insolvency and Bankruptcy Code (IBC) have not been complied with during the corporate insolvency resolution process of Videocon.
“In view of the analysis of facts and law, we have come to the conclusion that section … of the code (IBC) has not been complied with. Hence the approval of the resolution plan is not in accordance with section 31 of the code. Accordingly, the approval of the resolution of the plan by CoC as well as the designated authority (NCLT) is set aside.
“The matter is remitted back to CoC,” the appellate tribunal said while disposing of all the interim applications.
The NCLAT order came on petitions filed by two dissenting creditors — Bank of Maharashtra and IFCI Ltd — challenging the NCLT order allowing Anil Agarwal’s Twin Star Technologies to take over Videocon Industries along with 12 group firms.
Earlier on June 9, the Mumbai bench of the National Company Law Tribunal (NCLT) approved Twin Star Technologies’ Rs 2,962 crore bid for the debt-ridden group.
The NCLT order was already stayed by the appellate tribunal on July 19 over petitions filed by Bank of Maharashtra and IFCI Ltd and it had directed to maintain ‘status quo ante’.
Later, the Committees of Creditors (CoC) of Videocon Industries too had approached the insolvency appellate tribunal seeking fresh bids for the 13 companies.
Billionaire Anil Agarwal’s Twin Star Technologies had offered Rs 2,962 crore to take over Videocon, which was 4.15 per cent of the admitted claims of Rs 64,838.63 crore of lenders.
SBI, the leading lender of Videocon Industries, had requested the NCLAT to allow fresh bids for the group.