NCLT approval to SBI's request for personal insolvency case against Videocon Industries promoter Venugopal Dhoot - What does this mean?

The National Company Law Tribunal (NCLT) Mumbai has now approved the request of State Bank of India (SBI) for personal insolvency case against Videocon Industries promoter Venugopal Dhoot.

Videocon Industries promoter Venugopal Dhoot. Image source: Reuters

Difficulties for Videocon Industries promoter Venugopal Dhoot is increasing as the National Company Law Tribunal (NCLT) Mumbai has now approved the request of State Bank of India (SBI) for personal insolvency case against Dhoot. As per the information Dhoot had given personal guarantee to SBI for a loan of Rs 6157.

Speaking on the matter Brajesh Kumar Mishra, Assistant Editor at Zee Business, said that till now whatever recovery was made by the banks were done by property resolution, but the companies can invoke personal guarantee for the recovery amount left after property resolution and company resolution plan.

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He informed that SBI had filed a case of personal insolvency against Venugopal Dhoot, promoter of Videocon Industries in January 2021 and on Thursday, September 2, NCLT Mumbai gave the permission to SBI for the same and has also appointed a resolution professional.

Resolution professional will look into the matter and see how much properties does Venugopal have and what are his liabilities. After finding out all the details the resolution professional will give it to the NCLT, Brajesh informed.

#VideoconIndustries के #VenugopalDhoot की बढ़ेंगी और मुश्किलें !

SBI की अर्जी पर NCLT ने मंजूर किया पर्सनल इंसॉल्वेंसी का केस। पूरी खबर बता रहे हैं ब्रजेश कुमार...#Videocon #NCLT #SBI @AnilSinghvi_ @BrajeshKMZee pic.twitter.com/TYfwQHFFoZ

— Zee Business (@ZeeBusiness) September 2, 2021

Earlier on September 1, NCLT had directed to freeze and attach assets and properties of Videocon promoters following a petition by the Ministry of Corporate Affairs.

The NCLT Mumbai bench has directed the Central Depository Services Ltd (CDSL) and National Securities Depository Ltd (NSDL) that securities owned or held by the Videocon promoters "in any company or society be frozen and be prohibited from being transferred or alienation" and the details be shared with the Ministry of Corporate Affairs (MCA).

It directed the Central Board of Direct Taxes (CBDT) to disclose information about all assets of the Videocon promoters in their knowledge or possession, for the purpose of freezing and restraining such assets, as per a report by PTI.

The NCLT order, late on August 31, directed the Indian Banks Association (IBA) to facilitate disclosure of the details of the bank accounts, lockers owned by the Videocon promoters and ordered that such bank accounts and lockers also be frozen with immediate effect.

The tribunal also gave its permission to MCA to write to the state governments and the Union Territories to identify and disclose all details of immovable properties owned or held by the Videocon promoters.

The order issued by NCLT, Mumbai, directed that all movable and immovable properties of Videocon promoters, including bank accounts, lockers, demat accounts jointly held properties be attached during the insolvency process.

This order came following a fresh petition filed by the MCA seeking permission to attach the assets of Videocon promoters to increase recovery in the case, as per the PTI report.

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