The Supreme Court on Monday asked the lenders of Videocon group not to proceed with the resolution process even as it sought response from various parties on an appeal by Vedanta Group’s Twin Star Technologies, which has challenged the National Company Law Appellate Tribunal’s order that set aside the approvals given for the company’s takeover of distressed Videocon group.
Solicitor General Tushar Mehta, who represented the committee of creditors (CoC) led by the Bank of Maharashtra, agreed to a bench headed by Chief Justice NV Ramana’s suggestion that the CoC would not proceed with the process of inviting fresh bids till the next date of hearing in March.
“We are not passing any interim order but please tell the authorities not to proceed with the process, we will hear the case,” the CJI told Mehta.
Twin Star Technologies’ bid for Videocon, which was previously accepted by the lenders, was turned down by the appellate tribunal in January for not carrying enough value.
Senior counsel Abhishek Manu Singhvi, appearing for Twin Star, said the NCLAT did not have the power to set aside its Rs 2,692-crore bid for the 13 group companies of the debt-ridden Videocon group as it was approved by the CoC and also upheld by the NCLT.
He said that as many as 95% of votes in the committee of creditors were in favour of the plan submitted by Twin Star. Singhvi also said that various SC judgments have emphasised that an approved resolution plan is a binding contract and cannot be withdrawn.
On June 8, the Mumbai bench of NCLT had approved the resolution plan of Twin Star Technologies, a promoter entity of Vedanta.