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

NCLT Mumbai Asked To Pass Order On Insolvency Against Videocon Companies in Three Weeks

The National Company Law Appellate Tribunal has directed the Mumbai bench of the NCLT to pass an order over the insolvency plea against 15 Videocon group companies within next three weeks.

The NCLAT said that taking into consideration the nature of the matter, the National Company Law Tribunal Mumbai should pass an order within three weeks over the insolvency plea filed by banks.

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

Also read: ATC Moves NCLT Against Plea To Consolidate Insolvency Of Videocon Group Firms

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

"In the facts and circumstances consideration of process of 15 companies has already been raised and argued. Taking into consideration the nature of the matter, we direct the Adjudicating Authority (NCLT), Mumbai Bench to pronounce its judgment on an early date preferably within three weeks...," said NCLAT.

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

"If it is not pronounced within three weeks, the parties may bring this fact to the notice of this Appellate Tribunal," said NCLAT in its order on July 4.

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

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

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

Bloomberg Quint

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