NCLAT sets aside NCLT approval of Twin Star's resolution plan for Videocon

Remits matter back to Videocon's CoC for fresh bids; resolution plan approved was for only 4.15% of total outstanding claim amount and total hair cut to all creditors was 95.85%

The National Company Law Appellate Tribunal (NCLAT) on Wednesday set aside the Mumbai bench of National Company Law Tribunal (NCLT) order, which had approved the resolution plan of Videocon Group by Vendata’s Twin Star Technologies. It has remitted the matter back to Videocon’s committee of creditors (CoC) for completion of corporate insolvency resolution process (CIRP) in accordance with the insolvency and bankruptcy code (IBC).

“…we have come to the conclusion that Section 30 (2)(b) of the code has not been complied with and hence, the approval of the resolution plan is not in accordance with Section 31 of the code”, the