The Mumbai bench of the National Company Law Tribunal (NCLT) will hear a petition on Tuesday filed by the Ministry of Corporate Affairs against Videocon Industries Ltd and other associated group companies.
The ministry has filed an application at the National Company Law Tribunal (NCLT), Mumbai, under Section 241& 242 of the Companies Act, 2013.
The section empowers the central government to move against a company if its affairs are seen prejudicial to interests of the public at large.
Section 241 of the Companies Act, 2013, specifies, “The central government, if it is of the opinion that the affairs of the company are being conducted in a manner prejudicial to public interest, it may itself apply to the tribunal for an order under this chapter.”
Section 242 of the Act provides for suspension of the company management if the adjudicating authority is convinced that “company’s affairs have been or are being conducted in a manner prejudicial or oppressive to any member or members or prejudicial to the public interest.”
It may be noted that the affairs of the company are being currently managed by the resolution professional as the company is undergoing a corporate insolvency resolution process.
In June this year, NCLT Mumbai approved Twin Star Technology Ltd’s offer for Videocon Industries Ltd, resulting in almost 95 per cent haircut for lenders against approved claims of about Rs 62,000 cr. TSTL is a fully owned subsidiary of Anil Agarwal’s Vedanta Group.
Dissenting creditors Bank of Maharashtra, IFCI, Morgan Securities, SIDBI and ABG Shipyard moved appellate authority, National Company Law Appellate Tribunal (NCLAT), with a plea that the resolution plan approved by the NCLT is close to the liquidation value of the company.
While smaller lenders dissented against the resolution plan offered by TSTL, the larger banks in the committee of creditors (CoC) were in favour of it.
NCLAT stayed the resolution plan last month against which TSTL moved the Supreme Court, which has asked the appellate tribunal to decide the matter on the date of next hearing in September.