“The SBI is hereby prohibited to go ahead with the advertisement and directed to maintain the status quo till the decision is pronounced on merits”, said NCLT.
If SBI is allowed to execute the sale as advertised, the Videocon group may suffer an irreparable loss, observed the tribunal.
“The properties and assets of the Corporate Debtor be protected by restraining any sale, transfer, alienation, assignment or creation of any sort of third party right in whatsoever form or manner on the said foreign oil and gas assets and all the other rights, assets (tangible and intangible) and benefits held,” said the counsel representing Videocon Industries.
On August 22, the companies argued about the legal ownership and beneficial ownership of the assets, for which the court today said that the legal ownership of these assets vest with the subsidiaries of the Corporate Debtor, in this case Videocon Industries and the beneficial ownership vest with the Corporate Debtor itself.
Videocon Industries had earlier requested the NCLT to include Videocon Energy Brazil Ltd and Videocon Indonesia Nunukan Inc in the ongoing corporate insolvency resolution process, after its lenders invited bids for these assets to recover part of their debt.
VOVL being the legal owner wants the lenders to sell the asset, whereas VIL being the beneficial owner and SBI being the led in the Consortium of Creditors (CoC) wants the corporate veil lifted and include the asset in the resolution process.