NCLT declares Videocon promoter Venugopal Dhoot bankrupt over ₹12,668 crore default

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Published 6 November 2026

Case: State Bank of India v. Venugopal Dhoot
Court: National Company Law Tribunal (Principal Bench)
Bench: Justice V. Nallasenapathy (Judicial Member) and Ms. Prabhat Kumar (Technical Member)
Decided: 8 January 2024
Statutes: Insolvency and Bankruptcy Code, 2016 — s.95
Source: Bar & Bench

Bottom Line Up Front (BLUF)

In State Bank of India v. Venugopal Dhoot, the NCLT Mumbai Bench, on January 8, 2024, declared Videocon promoter Venugopal Dhoot bankrupt. This decision followed a default of ₹12,668 crore, primarily stemming from a personal guarantee Dhoot provided for loans to Videocon Industries Ltd. The NCLT invoked Section 95 of the Insolvency and Bankruptcy Code, 2016.

Ratio Decidendi · Legal Principle Established

A personal guarantor can be declared bankrupt under the Insolvency and Bankruptcy Code, 2016, if they fail to repay debts arising from personal guarantees given for corporate loans, even if the corporate debtor is already undergoing insolvency proceedings.

Practice & Procedural Impact for Advocates

Advocates representing financial creditors should pursue insolvency proceedings against personal guarantors under Section 95 of the IBC, 2016, even if the corporate debtor is already in CIRP. Litigants who have provided personal guarantees for corporate loans should be aware of their direct liability and the potential for personal bankruptcy proceedings.

Key Legal Takeaways

1NCLT declared Venugopal Dhoot bankrupt for a ₹12,668 crore default.
2The default arose from a personal guarantee for Videocon Industries Ltd. loans.
3The order was passed under Section 95 of the Insolvency and Bankruptcy Code, 2016.

The Legal Issue State Bank of India initiated insolvency proceedings against Venugopal Dhoot, the promoter of Videocon Industries Ltd., seeking to declare him bankrupt. The core issue was Dhoot's liability as a personal guarantor for loans amounting to ₹12,668 crore extended to Videocon Industries Ltd., which had already entered Corporate Insolvency Resolution Process (CIRP). The application was filed under Section 95 of the Insolvency and Bankruptcy Code, 2016 (IBC).

Court's Reasoning The National Company Law Tribunal (NCLT), Mumbai Bench, comprising Justice V. Nallasenapathy and Ms. Prabhat Kumar, found that Venugopal Dhoot had indeed provided a personal guarantee for the loans taken by Videocon Industries Ltd. The NCLT observed that despite the corporate debtor being in CIRP, the personal guarantee created an independent liability for Dhoot. The Tribunal concluded that Dhoot had defaulted on his obligations as a personal guarantor, thereby satisfying the conditions for initiating insolvency proceedings against him under Section 95 of the IBC, 2016.

What Follows The NCLT declared Venugopal Dhoot bankrupt. This declaration means that Dhoot's assets will now be subject to a resolution process to recover the outstanding debt. An insolvency resolution professional will be appointed to manage Dhoot's assets and liabilities, and a resolution plan will be formulated for the repayment of the ₹12,668 crore default.