Bankruptcy court admits insolvency petition against cable distribution firm DigiCable

The dedicated bankruptcy court has admitted Mumbai-based DigiCable Network (India) under the Corporate Insolvency Resolution Process (CIRP) in a plea filed by the Axis Bank. Country’s third-largest private sector lender Axis Bank had approached the court last year after the company defaulted to pay its dues of over Rs 156 crore.

The Mumbai bench of the National Company Law Tribunal (NCLT), while admitting the plea also appointed Sunil Kumar Choudhary as interim resolution professional (IRP) of the company.

“The supply of essential goods or services to the Corporate Debtor, if continuing, shall not be terminated or suspended or interrupted during the moratorium period,” said a bench preceded over by the judicial member HV Subba Rao and technical member Shyam Babu Gautam in its order of December 4. “During the CIRP period, the management of the corporate debtor will vest in the IRP/RP. The suspended directors and employees of the corporate debtor shall provide all documents in their possession and furnish every information in their knowledge to the RP.”


As per the company website, Mumbai-based DigiCable is one of the largest Cable distribution company with a presence in 125 locations in 46 cities and 14 states across the country.

Axis Bank had issued a notice on December 13, 2018, to DigiCable to repay its dues of over Rs 156 crore. However, since the company failed to repay its dues, the lender had approached the tribunal under the Insolvency & Bankruptcy Code (IBC) against the company.

Subsequently, the company had argued in June 2019, in the tribunal that there is an individual Dharmesh Pandya from London who is willing to pay about Rs 100 crore to acquire the majority stake in the company and hence the company will need some more time. Also, the company argued that Prudent ARC Ltd too has plans to invest Rs 100 Crores and prepared to settle the dues.

However, the tribunal observed in its 7-page order that despite several adjournments, the plan to repay the dues was not fructified and subsequently, the tribunal admitted the DigiCable for the insolvency resolution process.