TV Vision enters insolvency as NCLT admits Punjab National Bank’s CIRP plea

Mumbai: The curtains have come down on business as usual for TV Vision Limited after the National Company Law Tribunal admitted an insolvency petition filed by Punjab National Bank, setting the broadcaster on the path to the Corporate Insolvency Resolution Process (CIRP).

The Mumbai Bench of the NCLT admitted the lender’s application under Section 7 of the Insolvency and Bankruptcy Code (IBC), citing an alleged financial debt of Rs. 294.65 crore. The tribunal also appointed Alok Kumar Murarka as the interim resolution professional (IRP) to oversee the insolvency proceedings.

Following the admission of the CIRP, a moratorium has come into force under Section 14 of the IBC. During this period, legal proceedings against the company, enforcement of judgments, transfer or disposal of assets, and recovery of property occupied by the company are prohibited until the insolvency process concludes or a resolution plan is approved.

The order also suspends the powers of the company’s board of directors. Management of TV Vision will now vest with the interim resolution professional, who will run the company as a going concern in accordance with the provisions of the IBC.

According to the tribunal’s order, Punjab National Bank had extended two term loans aggregating Rs. 100 crore to the company in 2016. The loan account was classified as a non-performing asset on March 31, 2018, following repayment defaults. The tribunal noted that multiple one-time settlement proposals submitted by the company over the years amounted to acknowledgements of debt, keeping the insolvency application within the prescribed limitation period.

The tribunal observed that the financial creditor had established the existence of a financial debt and default through documentary evidence. It also noted that TV Vision had not objected to the admission of the insolvency proceedings, with its earlier objection relating only to the appointment of the initially proposed resolution professional, which was subsequently changed.

As part of the order, the IRP has been directed to make a public announcement inviting claims from creditors, submit periodic progress reports to the tribunal and take charge of the company’s management. Punjab National Bank has also been directed to deposit Rs. 3 lakh towards the initial CIRP expenses.

The commencement of the insolvency process marks a critical phase for TV Vision, with the resolution professional now tasked with steering the company through the statutory process while exploring a resolution that preserves value for creditors and other stakeholders.