NCLT Hyderabad Declares Former Deccan Chronicle Promoter T Venkatram Reddy Bankrupt
Pranav B Prem
The National Company Law Tribunal (NCLT), Hyderabad Bench, has declared Tikkavarapu Venkatram Reddy, former promoter of Deccan Chronicle Holdings Limited, bankrupt after holding that he failed to submit any repayment plan despite being given multiple opportunities as a personal guarantor for the company’s borrowings. Allowing an application filed by L&T Finance Ltd., the Tribunal ordered commencement of bankruptcy proceedings against him under the Insolvency and Bankruptcy Code, 2016.
The Bench comprising Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri observed that there was no material on record indicating any possibility of resolution of the insolvency of the personal guarantor. In the absence of a repayment plan, the Tribunal found it just and proper to initiate bankruptcy proceedings in accordance with law.
Deccan Chronicle Holdings Limited, a Hyderabad-based newspaper publisher, had availed a term loan of ₹25 crore from L&T Finance Ltd. in May 2011. Venkatram Reddy had executed a personal guarantee to secure the loan. After the company defaulted in repayment, an arbitral award dated March 15, 2023, directed both the corporate debtor and the personal guarantor to jointly and severally clear the dues along with interest. The arbitral award is stated to be under execution before the Bombay High Court.
Parallelly, insolvency proceedings against Deccan Chronicle Holdings Limited were admitted by the NCLT in July 2017, and a resolution plan was approved in June 2019. Since the debt was not fully resolved under the corporate insolvency resolution process, proceedings were initiated against Venkatram Reddy in his individual capacity as a personal guarantor. A petition under Section 95 of the IBC was admitted in June 2022, followed by the declaration of an interim moratorium.
The Resolution Professional repeatedly called upon the personal guarantor to submit a repayment plan in terms of the statutory framework. Despite being granted several opportunities, Venkatram Reddy failed to furnish a viable repayment plan or complete financial information. The Tribunal noted that even after extensions and final opportunities, no meaningful steps were taken by the guarantor to resolve the insolvency.
In view of the continued non-cooperation, the Resolution Professional reported that there was no scope for preparation or submission of a repayment plan. The Tribunal treated this failure as equivalent to rejection of a repayment plan under Section 115(2) of the IBC, paving the way for initiation of bankruptcy proceedings under Sections 121 and 123 of the Code.
Rejecting the objections raised by the personal guarantor, the Tribunal held that mere denial of the creditor’s claim, without justification or any concrete proposal for repayment, was insufficient. It observed that the outstanding dues exceeded ₹75 crore and that no material was placed on record to show any realistic prospect of settlement or resolution.
“It is observed that in the absence of a repayment plan filed by the Personal Guarantor, the Resolution Professional could not proceed with preparing or submitting the report as required under the Code. This failure is treated as equivalent to the rejection of the repayment plan,” the Bench noted. Accordingly, the NCLT declared Tikkavarapu Venkatram Reddy bankrupt and appointed Renuka Devi Rangaswamy as the Bankruptcy Trustee. The Trustee has been directed to take custody of the bankrupt’s assets, safeguard the estate, issue notices to creditors calling upon them to submit claims within the prescribed time, and carry out the bankruptcy process in accordance with the IBC and applicable regulations.
Appearance
For Applicant: Advocate V. Aneesh
For Personal Guarantor: Advocate Rithika Reddy
Cause Title: L&T Finance Ltd vs Tikkavarapu Venkatrami Reddy & Deccan Chronicle Holdings Ltd
Case No: IA(IBC)/534/2025 in CP (IB)/88/2021
Coram: Judicial Member Rajeev Bhardwaj, Technical Member Sanjay Puri
