By an order dated July 19, 2021, the National Company Law
Appellate Tribunal (the "NCLAT") stayed
the operation of the order of the National Company Law Tribunal
(the "NCLT") which had approved a
resolution plan in relation to the Videocon group. It has
been reported that Twin Star Technologies ("Twin
Star"), the successful resolution applicant, is
considering an appeal against the NCLAT's stay order to the
Supreme Court.
In staying the operation of the NCLT's order approving a
resolution plan proposed by Twin Star, the NCLAT appears to have
been influenced by the observations of the NCLT on two points, a
substantial haircut and a breach of confidentiality.
Apart from these two points, this note considers a possible
shortcoming in the NCLT order in relation to treatment of
dissenting creditors.
