State Bank of India Vs Venugopal Dhoot (NCLAT Delhi)
NCLAT Excludes Foreign Oil Assets from CIRP Because Subsidiary Assets Cannot Form Part of Parent Company Insolvency; Foreign Oil and Gas Assets Kept Outside Videocon CIRP Because CoC’s Commercial Wisdom Prevails; NCLAT Sets Aside NCLT Order Because Foreign Subsidiary Assets Cannot Be Added to Parent Company CIRP; Separate CIRPs for Domestic and Foreign Businesses Valid Because Businesses Required Different Resolution Strategies; Parent Company’s Guarantee Liability Does Not Transfer Subsidiary Assets into CIRP.
The National Company Law Appellate Tribunal (NCLAT), Delhi, decided six appeals arising from orders dated 12.02.2020 and 26.06.2024 concerning whether foreign oil and gas assets connected with Videocon Oil Venture Ltd. (VOVL) and related foreign subsidiaries should be included in the Corporate Insolvency Resolution Process (CIRP) of Videocon Industries Ltd. (VIL) and twelve associated group companies.
The dispute originated from applications filed by Venugopal Dhoot seeking inclusion of foreign oil and gas assets held through entities such as Videocon Oil Venture Ltd., Videocon Hydrocarbon Holdings Ltd., Videocon Energy Brasil Ltd., and Videocon Indonesia Nunukan Inc. in the Information Memorandum of Videocon Industries Ltd. for the purpose of CIRP. On 12.02.2020, the NCLT Mumbai had allowed the application and directed the Resolution Professional to treat the assets, liabilities, claims, rights, and benefits of those foreign entities as assets of Videocon Industries Ltd. for CIRP purposes.
