NCLT Admits SBI's Personal Insolvency Application Against Venugopal Dhoot
The Mumbai bench of National Company Law Tribunal has admitted a personal insolvency petition against Venugopal Dhoot, erstwhile promoter and personal guarantor of Videocon Industries Ltd., filed by its financial creditor State Bank of India.
While the oral order was pronounced on Sept. 1, the detailed order has been made available now.
Total debt due from Dhoot's personal guarantee stood at Rs 6,157 crore as on May 2020, the order said. Further interest, liquidated damages, fees, charges will also become repayable.
The Bench has no doubt in its mind that there is a "default" on the part of the Personal Guarantor by not fulfilling the debt owed to the Corporate Debtor, i.e., Videocon Industries Limited, as per the Deed of Guarantee entered between the parties.NCLT Mumbai
Dhoot had given personal guarantees to the loans availed under several agreements between SBI and Videocon Industries in 2012, which were invoked amid defaults. SBI issued the demand notice to Dhoot in July 2020. An insolvency petition was filed in August the same year.
It remained pending as the the Supreme Court was hearing several petitions against the operationalisation of provisions pertaining to personal guarantees. In May 2021, the Supreme Court upheld the provisions making way for creditors to proceed against personal guarantors, including Dhoot and several other high profile businessmen.
Now, the tribunal has admitted the personal insolvency petition against Dhoot and appointed a resolution professional in the matter. An interim moratorium has also been implemented over all of Dhoot's personal debts with effect from Sept. 1.
During the Interim Moratorium period: (i) any pending legal action or proceedings in respect of any debt shall be deemed to have been stayed; and (ii) the creditors of the debtor shall not initiate any legal action or proceedings in respect of any debt.”NCLT Mumbai
The matter is listed for hearing next on Sept. 20.
SBI had also filed personal insolvency applications against the other two erstwhile promoters of Videocon Industries—Raj Kumar Dhoot and Pradeep Kumar Dhoot—which are pending admission.
Meanwhile, in a separate case, the tribunal recently directed attachment of all personal properties of Videocon's former promoters, including Venugopal Dhoot, in a petition filed by the Ministry of Corporate Affairs.