Telecom Department Moves NCLAT Against Resolution Of Videocon, Claims Rs 881.92 Crore Due From Videocon Telecom

The Department of Telecommunication (DoT) has moved the insolvency appellate tribunal NCLAT in opposition to the NCLT order approving the consolidated decision plan for 13 firms of Videocon Group, together with Videocon Telecommunications.The DoT, in its petition, has requested the appellate tribunal to put aside the order handed by the Mumbai bench of the National Company Law Tribunal (NCLT) on June 8, 2021 permitting the Rs 2,962-crore takeover bid by Anil Agarwal's Twin Star Technologies.DoT has submitted earlier than NCLAT that defaulting telecom firms can't be permitted to wriggle out of their legal responsibility by the triggering of the Corporate Insolvency Resolution Process.A 3-member bench of NCLAT stated the appellate tribunal has already stayed the NCLT order on July 19, 2021 by granting a "status quo ante" to be maintained and Resolution Professional will proceed to handle the affairs of Videocon Industries as per provisions of the Insolvency & Bankruptcy Code."In view of the submissions made by the Appellant/Applicant (DoT) and the impugned order on stay on near similar grounds, there is no need to further go into details," stated NCLAT. NCLAT has directed to listing DoT's enchantment for listening to on January 11, 2023."The Respondents are directed to file ‘Reply-affidavit'' within the next two weeks and rejoinder, if any, may be filed within a week thereafter," the NCLAT order handed on December 8, 2021 stated. The respondents within the matter embrace Videocon Industries and Videocon Telecommunications.Videocon Telecommunications, so as to keep it up enterprise and as per the License Agreement for Unified License (Access Services) had secured the dues with as many as 131 Bank Guarantees from SBI in favour of DoT to the tune for Rs 881.92 crore.The stated financial institution ensures, nonetheless, have "illegally" not been allowed to be invoked because of pending proceedings earlier than the NCLT, DoT submitted earlier than the National Company Law Appellate Tribunal (NCLAT) by its counsel.The IBC can't be invoked for the decision of "fraudulent and malicious intent" of withholding the large arrears payable to the federal government and others, stated DoT's submission, recorded in NCLAT order.Moreover, beneath the authorized decision plan, Operational Creditors have been requested to deprive off all their excellent cash beneath the garb of company insolvency decision course of (CIRP), it alleged. DoT is hardly going to get a meagre quantity of 0.12 per cent of its whole declare, it added."The Code has been invoked for resolution of the Companies under stress and where managements do not have any ulterior motive to wriggle out of the liabilities," DoT submitted. Earlier, passing a 47-page-long judgement on June 8, NCLT had noticed that collectors of debt-ridden Videocon Industries Ltd will probably be taking almost 96 per cent haircut on their loans and the bidder is "paying almost nothing".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 cut or Tonsure, Total Shave". Dissatisfied monetary collectors - Bank of Maharashtra and IFCI Ltd - and former Videocon group Chairman & Managing Director Venugopal have already challenged the NCLT order.In September, SBI, the main lender of Videocon Industries had approached NCLAT requesting for a rebidding of the 13 firms of the debt-ridden group, on account of sturdy observations in opposition to the Rs 2,962-crore takeover bid by Anil Agarwal's Twin Star Technologies.