NCLAT Upholds Insolvency Against Dhoot Brothers Amid Videocon Default

The National Company Law Appellate Tribunal (NCLAT) has dismissed the appeals filed by Rajkumar and Pradeep Dhoot, reinforcing the initiation of insolvency proceedings against them due to defaults by Videocon Industries.

The personal insolvency was instigated after the State Bank of India issued a demand notice for Rs 5,353.78 crore, holding the Dhoot brothers liable as personal guarantors of Videocon Industries. The NCLAT decision supports previous rulings by the Mumbai bench of the National Company Law Tribunal (NCLT).

This outcome comes after the NCLT's application under Section 95 of the Insolvency & Bankruptcy Code, which empowers financial creditors to pursue insolvency against personal guarantors, was accepted. The Dhoot brothers' challenge was rejected based on comprehensive reviews of defaults pertaining to the Rupee Term Loan and Working Capital Facilities.