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NCLAT stays Vedanta's Resolution Plan for Videocon on plea by BoM, IFCI

Bar & Bench  

The National Company Law Appellate Tribunal (NCLAT) has stayed the Vedanta Group's bid under the Insolvency and Bankruptcy Code (IBC) for Videocon Industries Ltd (Bank of Maharashtra v. Videocon Industries Ltd. & Ors.). The move came as a relief for appellants, Bank of Maharashtra (BoM) and IFCI Ltd, which had approached the NCLAT against the approval given by National Company Law Tribunal (NCLT) Mumbai to the resolution plan (RP) submitted by Vedanta's Twinstar Technologies Ltd. BoM submitted that it could not have been paid less than the liquidation value. NCLT had initiated the Corporate Insolvency Resolution Process against the 13 group entities of Videocon on a plea filed by State Bank of India on behalf of the lenders. From the 11 resolution plans received from various applicants, the Resolution Plan by Twinstar Technologies was approved by the CoC with a vote of 95.09%. Aggrieved by the Resolution Plan and by the treatment meted out to the dissenting financial creditors, the appellants challenged the order.