NCLAT splits Videocon cases; Venugopal Dhoot seeks Supreme Court review
Venugopal Dhoot, the man behind Videocon Group, is now asking the Supreme Court to step in after a recent tribunal decision didn't go his way.
The National Company Law Appellate Tribunal (NCLAT) decided that Videocon Industries (which makes electronics) and Videocon Oil Ventures (which deals with oil) should go through separate insolvency processes, basically separate paths for sorting out their debts.
This overturned an older ruling that had combined both cases into one.
VOVL resolved, VIL still pending
NCLAT said it made sense to keep things separate because VIL and VOVL are totally different businesses: VIL is engaged in consumer electronics while VOVL is an oil company.
Dhoot had earlier tried to merge their cases, but creditors like SBI pushed back.
Now, VOVL's case is wrapped up, but VIL's isn't, and any big decisions about combining assets or maximizing creditor recovery will be left to the creditor committees under India's insolvency laws.