NCLT declares Videocon promoter Venugopal Dhoot bankrupt over ₹12,668 crore default

The National Company Law Tribunal (NCLT) at Mumbai on Thursday declared former Videocon Industries promoter Venugopal Nandlal Dhoot bankrupt after admitting a petition filed by the State Bank of India (SBI) over outstanding dues of ₹12,668 crore. [SBI Vs Venugopal Dhoot]

A Bench of Judicial Member Vinay Goel and Technical Member Charanjeet Singh Gulati passed the order under Section 126 of the Insolvency and Bankruptcy Code, 2016 (IBC).

"We are satisfied that the Petition complies with all the requirements prescribed in Section 123 of the Code. Therefore, we consider it proper to admit this Petition," the Tribunal said.

The NCLT appointed Asish Narayan as the bankruptcy trustee and directed that Dhoot's estate vest in him immediately for administration and distribution among creditors.

The proceedings arose from personal guarantees furnished by Dhoot for credit facilities extended to Videocon Industries and borrowings connected with Videocon Telecommunications Limited.

SBI and its erstwhile associate banks had extended term loans and working capital facilities to the Videocon group. Dhoot had executed multiple personal guarantees to secure repayment of these facilities.

Following defaults, the lenders invoked the guarantees in February 2018.

Videocon Industries was admitted to corporate insolvency resolution proceedings in June 2018. The proceedings were subsequently consolidated with those of 12 other Videocon group companies.

Separately, SBI initiated personal insolvency proceedings against Dhoot. On April 8 this year, the NCLT admitted the application and commenced his personal insolvency resolution process.

During these proceedings, Dhoot proposed a repayment plan offering ₹600 crore over 36 months through a proposed real estate development project in Siliguri.

However, the resolution professional found that the plan had not been prepared in consultation with him, as required under the IBC.

The proposed repayments were also dependent on future development, regulatory approvals and cash flows that could not be verified. No upfront payment was offered.

The creditors consequently declined to approve the proposal.

On July 17, the NCLT rejected the repayment plan and terminated Dhoot's personal insolvency resolution process, allowing creditors to initiate bankruptcy proceedings.

SBI subsequently filed the present petition, claiming outstanding liabilities of ₹12,668.06 crore, including interest and penalties, as of September 30.

The Tribunal found that the petition complied with statutory requirements and was filed within the prescribed three-month period.

Dhoot has been directed to submit his financial position to the bankruptcy trustee within seven days. The trustee must invite creditors' claims and submit a preliminary report within 90 days.

Advocates Srideepa Bhattacharyya, Ananya Bajpai and Aman Patidar of Cyril Amarchand Mangaldas appeared for SBI.

[Read Order]