NCLT admits SBI’s personal insolvency plea against Dhoot
NCLT DIRECTS FREEZE OF SECURITIES HELD BY VIDEOCON PROMOTERS IN ANY COMPANY OR SOCIETY
The Mumbai National Company Law Tribunal has admitted State Bank of India's plea to initiate personal insolvency proceedings against Venugopal Dhoot, the former promoter of Videocon Industries Ltd.
The tribunal has appointed Ashish Narayan as the interim resolution professional to examine SBI's petition seeking to recover dues from Dhoot and to assess his entire assets and liabilities. This comes after SBI, in its petition, sought to invoke personal guarantee given by Dhoot and asked for appointment of Narayan as the interim resolution professional.
A detailed order is awaited in the matter. According to provisions of a personal guarantee in the Insolvency and Bankruptcy Code, lenders have to approach the tribunal to appoint the interim resolution professional to assess their assets and liabilities.
The bench led by Justice Suchitra Kanuparthi noted that Dhoot has defaulted on personal guarantees of more than 61.57 bln rupees. The bench allowed SBI's petition in the matter.
SBI has invoked personal guarantees of defaulting promoters to increase recovery in stressed assets as lenders are facing a 95% haircut.
On Tuesday, the Mumbai bench of the National Company Law Tribunal directed Central Depository Services Ltd and National Securities Depository Ltd to freeze securities owned by Venugopal Dhoot, and four other key officials of the company, and directed them to share the details of the securities with the corporate affairs ministry. It also prohibited the transfer or alienation of those securities. The NCLT directed the former promoters and some key officials of Videocon Group to disclose on an affidavit their moveable and immovable properties and assets, including bank accounts, owned by them in India and abroad.
The tribunal's order came on the heels of a petition filed by the Ministry of Corporate Affairs, seeking permission to attach properties and assets of Venugopal Dhoot, Rama Venugopal Dhoot and some key officials including Vinod Kumar Bohra, Mandar Joshi and Ashutosh Gune.