NCLAT Directs National Company Law Tribunal To Pass Order On Insolvency Against Videocon Group Companies In 3 Weeks

The National Company Law Appellate Tribunal (NCLAT) has directed the National Company Law Tribunal (NCLT) Mumbai to pass an order on the insolvency plea against 15 Videocon group companies filed by its lender banks within the next three weeks.

The NCLAT order came in response to a plea filed by Videocon’s lenders, led by SBI and the Resolution Professional of the company. The lenders had pleaded that the NCLT was yet to pronounce its judgment even as it reserved an order after completion of arguments in January 2019.

A three-member NCLAT bench headed by Chairman Justice S J Mukhopadhaya observed that arguments in the matter have already been completed, asked the lenders to inform it, if the NCLT does not pronounce its order within three weeks.

The appellate tribunal further said that it appears that even on April 16, 2019, when the matter was listed, order has not been pronounced.

Earlier, the lenders had informed the NCLAT that arguments have already been completed at the NCLT on January 25, 2019, and an order has been reserved, but no judgment has been delivered till date.

According to the lenders, the fate of 15 companies is not decided because no order has been passed in the case.

Incidentally, the Videocon group companies owes over Rs 90,000 crore to a consortium of banks led by SBI.