India’s National Company Law Tribunal (NCLT) admitted State Bank of India’s (SBI) petition to start personal insolvency process against guarantor Rajkumar Nandlal Dhoot, the brother of Videocon Industries Ltd.'s founder Venugopal Dhoot.

The Mumbai bench of the NCLT, comprising Judicial Member Justice V.G. Bisht (Retired) and Technical Member Prabhat Kumar, pronounced the judgment against Dhoot on 4 June, the tribunal order showed.

SBI had initiated insolvency process against Dhoot, who was the personal guarantor for various loans granted to Videocon Industries, for recovery of around 5,354 crore rupees ($641 million).

“Upon perusal of the documents on record, it is clearly established that the corporate debtor (Videocon Industries) has committed defaults in repayment of loan amount granted by the financial creditor (SBI),” the NCLT said in its order.

Dhoot, personal guarantor to Videocon Group’s flagship company Videocon Industries, has also committed default in repayment of loan facility demanded by SBI after invocation of personal guarantee, it added.

Considering the facts and upon perusal of the documents on record such as demand notices, proof of service, guarantee deeds and joint deed of guarantee, the personal insolvency petition against Dhoot filed under Section 95 of the Insolvency and Bankruptcy Code is admitted, the tribunal remarked.

The NCLT also ordered the resolution professional Ashish Narayan to issue a public notice seeking claims from all creditors.

Videocon Group, which is currently undergoing corporate insolvency resolution process, has presence in various verticals such as consumer electronics and home appliances, oil & gas, real estates and retail, according to its website.

Note: $1 = 83.4906 Indian rupees

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