Lenders to Binani Cement on Thursday asked the Kolkata bench of the National Company Law Tribunal (NCLT) to ensure the resolution process is not delayed, even as they sought consideration of Dalmia Bharat’s resolution plan.
Lenders to Binani Cement on Thursday asked the Kolkata bench of the National Company Law Tribunal (NCLT) to ensure the resolution process is not delayed, even as they sought consideration of Dalmia Bharat’s resolution plan. “If the offer is proper, the tribunal can consider it,” Pratap Chatterjee, the counsel for the committee of creditor’s (CoC) of the debt-laden company, said in his submission before the bench. The resolution plan submitted by Rajputana Properties, an entity controlled by Dalmia Bharat, was passed by 99.4% voting by the CoC on March 14, Abhrajit Mitra, the counsel for the resolution professional (RP), Vijaykumar V Iyer, had said in his submission before the tribunal on March 19. Chatterjee also pointed out that the allegations by the RP of “fraudulent transactions” made by the promoters of Binani Cement had nothing to do with the resolution process and that “all the details (of the alleged fraud) are in the data-room”.
Speaking for the RP, Mitra submitted that, “It is based on a forensic report of the auditor Haribhakti & Co. It is incumbent on the RP to bring these fraudulent transactions to the notice of the NCLT, as per the provisions of the IBC (Insolvency & Bankruptcy Code).” However, he, too, argued that the resolution process should not be derailed. “This fraudulent transaction is a separate matter. The discovery of fraudulent transaction and its outcome cannot impact the resolution process and the finalisation of the resolution plan,” Mitra argued.
Further, responding to the contention of Aditya Birla Group-led UltraTech Cement’s counsel Sudipto Sarkar on the CoC not considering UltraTech’s revised bid, Mitra clarified: “They (UltraTech) filed it beyond time. On March 8, they send a mail to the RP and CoC, offering to increase their bid. It was not a resolution plan. The CoC decided in its meeting that as the revised bid was submitted beyond time, it will not be considered”.
In a supplementary affidavit, UltraTech Cement on Wednesday had sought the declaration of Binani Cement’s CoC meeting held on March 14 as “illegal and void”. It also asked for its offer “to be considered by the CoC and the applicant (UltraTech) be declared the highest successful bidder”. The tribunal is likely to hear this application in the next hearing of the case on March 27.
Justice Jinan KR asked the RP to file the progress report on the corporate insolvency resolution proceedings. The RP would also file replies to the applications of UltraTech and Binani. In a separate development, Binani Industries has filed an application for termination of insolvency proceedings against Binani Cement before the tribunal. The move follows UltraTech Cement offering a comfort letter for an amount of Rs 7,266 crore to be given to promoters of Binani Cement, to signify its intent to buy a 98.47% stake in the company. The funds are expected to help settle dues of all the stressed company’s creditors. The purchase can go through only if the insolvency proceedings, under the purview of the IBC against Binani Cement, are terminated or the NCLT permits UltraTech’s revised bid to be considered