NCLT bars SBI from selling overseas oil and gas assets of Videocon group

The National Company Law Tribunal (NCLT) has barred State Bank of India from selling oversees oil and gas assets of debt-laden Videocon group outside the ongoing insolvency process.

SBI had advertised to sell the upstream oil and gas assets of Videocon located in Brazil and Indonesia. The bank had taken a view that these assets do not belong to Videocon group and, therefore, the general moratorium applicable to companies under the insolvency process was not relevant in this case. While the NCLT did not rule whether the asset was part of the entity which is under the insolvency process, it said that if SBI is allowed to execute the sale, the Videocon group may suffer an irreparable loss in future if the tribunal takes a view that the asset in question belongs to or owned by the group.