# Videocon Industries Ltd MA 1306 -2018 & Ors MAs CP 02-2018 & Ors CPs

> NCLT judgment dated 2019-08-08. Citation: TCN-2019-NCLT-02021. This case involves multiple applications related to the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 8 Aug 2019
- **Citation:** TCN-2019-NCLT-02021
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/videocon-industries-ltd-ma-1306-2018-ors-mas-cp-02-2018-ors-cps-c9cc3da6

## Summary

### Background

This case involves multiple applications related to the Corporate Insolvency Resolution Process (CIRP) of 15 Videocon Group companies. State Bank of India (SBI) filed an application seeking consolidation of the CIRPs for these companies. Venugopal Dhoot, an ex-director of the Videocon group, also filed a similar application. Several other parties, including financial creditors, operational creditors, and labor unions, filed applications either supporting or opposing the consolidation. The Hon'ble Principal Bench of NCLT, New Delhi, had previously transferred all matters related to the Corporate Debtors to the Mumbai Bench for consolidated consideration. The core issue revolves around whether the CIRPs of these 15 companies should be consolidated into a single

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## Facts

- The Videocon Group consists of multiple companies engaged in various businesses, including manufacturing, assembling, and distributing consumer electronics, telecommunications, and IT products.

- These companies availed financial assistance from banks under Rupee Term Loan (RTL) and VTL agreements, with each company being jointly and severally liable. Due to defaults, the lenders constituted a Joint Lenders' Forum (JLF). SBI filed an application seeking consolidation of CIRPs for 15 Videocon Group companies, arguing that they function as a single economic unit with interlinked operations and cross-holdings.

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Processes (CIRPs) of the 15 Videocon Group companies …

**Ratio:** The power to consolidate arises out of equity, enabling a bankruptcy court to disregard

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**Reasoning:** The court considered the interdependence of the companies, common control, common

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**Interpretation:** The Insolvency and Bankruptcy Code (IBC) does not explicitly provide for

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**Application:** The court applied the ratio to the facts of the case, finding that 13 out of

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** State Bank of…
- **Respondents:** Videocon Industrie…
- **Other parties:** 7th Edition…; 15 ca…; +2 more

## Timeline

- **2018-10-30 — Filing of MA 1…**: State Bank of India (SBI) filed Application No. 1306/2018 seeking consolidation of CIRP…
- **2018-10-24 — Order by Principal…**: The Hon'ble Principal Bench transferred all matters where CIRP commenced of the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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