The National Company Law Appellate Tribunal (NCLAT) on Tuesday refused to stay the corporate insolvency resolution process for Binani Cement Ltd.
An NCLAT bench, headed by justice S.J. Mukhopadhyay, maintained a status quo after hearing the petition by Dalmia-Bharat-controlled Rajputana Properties Pvt. Ltd, which had challenged the revised resolution plan made by UltraTech Cement Ltd for debt-ridden Binani Cement.
Former attorney general Gopal Subramanium, who appeared for Rajputana Properties, sought an order of status quo in view of the appeal pending before the appellate tribunal.
The bench refused to stall the insolvency resolution process and stated that the outcome of the process would be subject to the final decision in the appeal.
Earlier this month, Rajputana Properties had challenged the 2 May order of the NCLT’s Kolkata bench, which allowed the resolution professional and committee of creditors (CoC) for Binani Cement to consider the revised resolution plan submitted by UltraTech, while offering Rajputana Properties an opportunity to revise its resolution plan of Rs6,930 crore.
UltraTech Cement’s revised offer was at Rs7,900 crore, against its earlier bid of Rs7,200 crore.
On 15 May, the appellate tribunal had asked the resolution professional to continue with the resolution process by submitting the revised resolution plans for the corporate debtor in a sealed cover before the CoC, along with his opinion on questions pertaining to conformity with the Insolvency and Bankruptcy Code.
Binani Industries Ltd, the parent of Binani Cement, has also offered to pay all the dues of its subsidiary to its financial and operational creditors in two weeks, if the tribunal so permitted.
Binani Cement, which was admitted by NCLT in July 2017 for resolution under the IBC, owes over Rs6,500 crore to its lenders. The matter will be next heard on 10 July.
Source: Livemint, May 22,2018