NCLAT stays Resolution Plan for Videocon Industries Group – Bank of Maharashtra Vs. Videocon Industries Ltd. & Ors. – NCLAT New Delhi

It is stated that the Resolution Plan provided a haircut of almost 90 to 96 %. The Plan provided meagre amount of Rs. 2900 Crores for admitting liability of Rs. 65,000 Crores and the waiver itself was Rs. 62,100 crores whereby public money has been lost and the Financial Creditor have been settled for merely 5 to10%. It is argued that no upfront payment let alone to the extent to meet compliance of Section 30 read with Section 53 are provided; that Non-Convertible Debentures have been adopted as modality to pay/discharge Appellant’s debt. NCLAT held that considering the observations of the Adjudicating Authority and the submissions made by the Learned Sr. Counsel for Appellants and considering the exceptional facts of present matter the Impugned Order is stayed till the next date and status quo ante as before passing of the Impugned Order is directed to be maintained. Resolution Professional will continue to manage the Corporate Debtors as per provisions of IBC till the next date.

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If any Public depositor applies showing due of the debt claiming itself as operational creditor and the Resolution Professional or the Tribunal do not accept the claim on the ground that they are not financial creditor, we allow the appellant to raise the question before the Tribunal and if any adverse decision is given by the Tribunal, it will be open to the appellant to raise the issue before NCLAT- Hind Motors India Ltd. Vs. Adjudicating Authority NCLT, Chandigarh – NCLAT New Delhi

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