The Mumbai bench of National Company Law Tribunal (NCLT) on Thursday heard a petition filed by country’s largest public sector lender State Bank of India (SBI) to initiate bankruptcy proceedings under the Insolvency and Bankruptcy Code against Videocon Telecommunications Ltd.
The bank in its petition has claimed that Videocon Telecommunications has defaulted in payment of Rs 234 crore to SBI and three of its associate banks (now merged with SBI). Out of this, the company owes Rs 193 crore to SBI alone in principal and interest.
A consortium of 18 banks have an exposure of Rs 1,700 crore to Videocon Telecommunications, which has defaulted on loans and bank guarantees in January 2018.
Zal Andhyarujina, senior counsel representing Videocon Telecommunications at the NCLT opposed the plea of SBI and said that the bank’s petition is defective as the lender has not furnished the record of default by the company before the tribunal.
“No notices were given to company on payment of dues. There was no crystallization of dues by the bank. The petition does not furnish the record of default, hence SBI plea is defective,” said Andhyarujina in the tribunal.
The tribunal will resume hearing the case on June 8.
On June 6, another bench of NCLT admitted a plea from SBI to initiate a resolution process against Videocon Industries Ltd, the flagship firm of Videocon Group promoted by Venugopal Dhoot. The tribunal has also approved the name of Anuj Jain as interim resolution professional (IRP) to conduct the corporate insolvency resolution process of the company.
SBI had filed the insolvency petition against Videocon Industries in December last year, following directions from the Reserve Bank of India (RBI). The central bank in August 2017 had sent a list of 29 stressed corporate accounts to bankers for action under the insolvency process by December. Videocon Industries total debt stood at Rs 19,506 crore as of March last year.