Videocon Industries Ltd. work at the company’s offices in Mumbai, India. (Photographer: Adeel Halim/Bloomberg News)

GAIL Wants NCLT To Admit Its Claim Against Videocon Industries

State-owned GAIL (India) Ltd. on Wednesday approached the National Company Law Tribunal seeking admission of its Rs 390-crore claim from Videocon Industries Ltd., which the resolution professional had rejected earlier.

In an application, the counsel for GAIL said the state-owned gas utility, which is an operational creditor of Videocon Industries, should be included in the list of creditors.

“We want to file an application seeking a claim of Rs 390 crore which the RP had rejected,” the counsel told NCLT.

The counsel based the application on a similar matter where GAIL (India), being an operational creditor, was allowed to be in the list of creditors for Essar Steel and Alok Industries Ltd. by NCLT Ahmedabad, even as the resolution professional had rejected both the proposals.

NCLT Ahmedabad has directed the resolution professional to include GAIL (India) in the list of creditors for both the companies.

The single-judge bench of the NCLT, presided over by MK Shrawat, fixed the next date of hearing on the matter for July 8.

Videocon Industries' debt stood at Rs 19,506 crore as of March last year. The group is controlled by Venugopal Dhoot.

The tribunal had admitted the insolvency petition against Videocon on June 7 last year.

The company is among 40 large defaulters identified by the Reserve Bank of India for insolvency proceedings.

The Aurangabad-based Videocon Group's core businesses are consumer electronics and oil and gas exploration. The lenders are auctioning the electronics business estimated to be worth $2 billion. The subsidiaries of Videocon are into manufacturing, sale and distribution of consumer goods.

Some of the units referred to the NCLT include Value Industries, Trend Electronics, KAIL, Millennium Appliances India, Applicomp India, Sky Appliances, Techno Electronics, Century Appliances, PE Electronics, Next Retail, Evans Fraser & Co. and Videocon International Electronics.

Also read: Videocon Group: Why India’s Largest Insolvency Case Is Still In Limbo