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Informist, Thursday, May 14, 2026

 

NEW DELHI – The National Company Law Appellate Tribunal on Thursday refused to include the foreign oil and gas assets of various arms of Videocon Industries Ltd. in the company's assets in its insolvency proceedings. The appellate tribunal rejected Videocon Group's former managing director Venugopal Nandlal Dhoot's argument that Videocon Industries was the ultimate owner of the foreign oil and gas assets by holding 100% shares in Videocon Oil Ventures Ltd.

 

Dhoot had sought that all foreign assets, properties, rights, and claims of Videocon Oil Ventures, Videocon Hydrocarbon Holdings Ltd., Videocon Energy Brasil Ltd., and Videocon Indonesia Nunkan Inc. be included as assets and properties of Videocon Industries for the purpose of insolvency resolution.

 

Rejecting Dhoot's argument, the appellate tribunal said it was Videocon Energy Brasil Ltd., which could be called, in a strict sense, the actual owner of the assets, since it holds 50% shareholding in Videocon Oil Ventures, which directly holds the foreign assets. It is a trite law that the assets of a corporate debtor's subsidiaries cannot be included in the insolvency proceedings of the debtor, the appellate tribunal said. The framework of the Insolvency and Bankruptcy Code, 2016, is clear in excluding assets over which the corporate debtor has no ownership rights from its insolvency, it added.

 

Videocon Industries and Videocon Oil Ventures underwent separate insolvency proceedings under the provisions of the insolvency law, the appellate tribunal said. The creditors of both companies intended the insolvency proceedings to run separately, the appellate tribunal said. Videocon Industries and Videocon Oil Ventures are involved in starkly different businesses – Videocon Industries being in the market of consumer electronic products and Videocon Oil Ventures in the business of oil products, the appellate tribunal said. One single entity would not have the expertise to revive these varied businesses, it added. The appellate tribunal allowed the State Bank of India's appeals and ruled against Dhoot. 

 

In 2018, the Mumbai bench of the National Company Law Tribunal admitted a petition by State Bank of India seeking to initiate insolvency proceedings against Videocon Industries. Further, in 2019, the Mumbai tribunal allowed the consolidation of the corporate insolvency resolution process of Videocon Group's related companies.  

 

Dhoot said that Videocon Industries' resolution professional and committee of creditors committed a grave error in not considering the foreign oil and gas assets of arms as assets of the debt-ridden company, particularly when the lenders' claim on these assets, to the tune of INR 231.21 billion, was treated as a claim against Videocon Industries. However, the bank opposed this, arguing that Videocon Industries' insolvency would erode the value of other companies' assets. 

 

Meanwhile, the tribunal approved the resolution plan by Twin Star Technologies Ltd. for Videocon Industries and three other companies, while Bharat Petroleum Corp. Ltd.'s overseas arm BPRL Ventures B.V. took control of the bankrupt Videocon Oil Ventures by exercising its right of first refusal.

 

Thursday, shares of State Bank of India ended 1.0% higher at INR 979.90 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Saji George Titus

 

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