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Informist, Thursday, Apr. 9, 2026

 

--NCLT admits SBI's personal guarantor IBC plea vs former Videocon MD Dhoot 

--CONTEXT:SBI filed insolvency plea vs Videocon's Dhoot for INR 62 bln dues

 

By Surya Tripathi 

 

NEW DELHI – The Mumbai bench of the National Company Law Tribunal has admitted State Bank of India's plea to start insolvency proceedings against Videocon Group's former managing director Venugopal Nandlal Dhoot for dues of INR 61.58 billion. Dhoot, who was a personal guarantor to loans availed by Videocon Industries Ltd. and Videocon Telecommunications Ltd., failed to repay the defaulted debt after SBI invoked his personal guarantee, said the tribunal.

 

The tribunal had appointed Asish Narayan as the resolution professional in the case. Narayan will prepare a list of creditors, while Dhoot will prepare a repayment plan, in consultation with the former, detailing a proposal to creditors for restructuring of his debts or affairs, said the tribunal.

Videocon Telecommunications and Videocon Industries had availed loan facilities in 2010 and 2012, respectively, from State Bank of India. In these loan agreements, Dhoot had guaranteed to pay the facilities through deeds of guarantees.

 

When the two Videocon group companies defaulted on loan repayment, SBI issued demand notices to these companies in 2018. SBI had also issued demand certificates to Dhoot with respect to loan repayment of both the Videocon companies in 2018.

 

In 2018, the tribunal admitted SBI's plea to start insolvency proceedings against Videocon Telecommunications and Videocon Industries. Further, in 2019, the tribunal allowed consolidation of the corporate insolvency resolution process of Videocon Group's related companies. Since Dhoot had not paid the dues within 14 days of receipt of the demand notice from SBI, the latter moved the tribunal to start insolvency proceedings against the personal guarantor.

 

Contesting the insolvency proceedings, Dhoot said SBI's application was not maintainable and it was not filed within the prescribed timeline under the limitation law. Under the law, insolvency applications have to be filed within three years of the default date. Dhoot said the deed of guarantee was entered with SBICAP Trustee Co. Ltd., whereas the present application had been filed by SBI.

 

The tribunal said Dhoot's contention that SBI's petition was barred under the limitation law was devoid of merit as the same was filed within the required timeline. The tribunal said Dhoot had executed a deed of guarantee in favour of the lenders, one of whom was SBI, and hence the latter was allowed to file the insolvency proceedings against the personal guarantor of the loan.

 

On Thursday, shares of State Bank of India ended 1.9% lower at INR 1,040.95 on the National Stock Exchange.  End

 

Edited by Tanima Banerjee

 

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