Tribunal stays Vedanta's take over of Videocon

The National Company Law Appellate Tribunal on Monday stayed industrialist Anil Agarwal's Twin Star Technologies' Rs 2,962.02 crore-takeover bid of debt-ridden Videocon Industries.

A two-member NCLAT bench headed by its Officiating Chairperson Justice A I S Cheema stayed the order passed by the Mumbai bench of the National Company Law Tribunal on June 9.

The National Company Law Appellate Tribunal's (NCLAT) direction came over two petitions filed by unsatisfied creditors -- Bank of Maharashtra and IFCI Ltd.

The appellate tribunal has issued notices to the Committee of Creditors, the Resolution Professional of Videocon and the successful resolution applicant Twin Star.

It has asked them to file the reply within two weeks and directed to list the matter on September 7 for the next hearing.

Confirming the development, advocate Chaitanya B Nikte, who had filed a petition on behalf of the Bank of Maharashtra told PTI that the NCLAT has stayed the NCLT order, approving the bid.

"Bank of Maharashtra had gone for an appeal, challenging the said order.

"The NCLAT after considering the contentions of Bank of Maharashtra stayed the orders of the NCLT," he said.

According to Nikte, while passing the order approving Twin Star's bid, the NCLT has not considered the grievances of Bank of Maharashtra and was directed to pay an amount lesser than the liquidation value.

Videocon Industries and its 12 group companies had a total admitted claims of Rs 64,838.63 crore.

“Since this is the commercial wisdom of the CoC and as per the various judgements of the Supreme Court and by following the judicial precedents, discipline the Adjudicating Authority (NCLT) approves the resolution plan of the Successful Resolution Applicant with a suggestion, request to both CoC and the Successful Resolution Applicant to increase the pay-out amount to these Operational Creditors especially MSMEs,” the NCLT had earlier said.

Photograph: Francis Mascarenhas/Reuters