The National Company Law Tribunal has accepted the SBI application invoking a personal guarantee case against Videocon promoter Venugopal Nandlal Dhoot in the ₹6,158-crore loan default by the company in 2018.
Videocon Telecommunications and Videocon Industries in 2010 and 2012 availed various loans for working capital from SBI. Being the promoter of these companies, Dhoot had provided personal guarantee for these loans. In 2018, the bank sent a demand notice to both the companies on default of their loans and moved NCLT.
In 2019, NCLT allowed consolidation of the corporate insolvency resolution process of VIL with 12 other companies namely VTL, Electroworld, Value, Techno Kart, Applicomp, Sky, Techno, Millennium, Century, Evans Fraser, PE and CE India. In fact, the corporate insolvency resolution proceedings of the Videocon Group companies is currently pending.
In 2019, the bank sent a demand notice to the Personal Guarantor Dhoot under the provisions of the IBC, and it was replied to by the Personal Guarantor in 2020. However, since Dhoot has not paid the default amount in 14 days of receipt of the IBC Demand Notice, SBI has filed an application before NCLT.
In 2020, SBI had sent a notice to the personal guarantor Dhoot to repay the outstanding loan of ₹6,158 crore of the company. The Act for principal borrowers/ corporate debtor as well as the personal guarantor on the very day of first default May 2016, as the liability of personal guarantor and principal borrower co-extensive. In fact, NCLT observed that the guarantor had executed a deed of Guarantee in August 2010 in favour of the lenders, including SBI.
Accepting the petition invoking personal guarantee, NCLT said the case will cease to have effect at the end of 180 days, or this Tribunal passes order before that. During the moratorium period any pending legal action or proceeding in respect of any debt will be deemed to have been stayed, and lenders cannot initiate any legal action on defaulted debt.
The debtor cannot transfer, alienate, encumber, or dispose of any of his assets or his legal rights, it added.
NCLT directed the resolution professional Asish Narayan to collect the claims of lenders in 21 days and call for a meeting of the creditor in 28 days.