Dalmia Bharat filed an application before the appellate tribunal, challenging the NCLT order dated May 2.
The Dalmia Bharat-controlled Rajputana Properties (RPPL) on Friday moved the National Company Law Appellate Tribunal (NCLAT) against the order of the Kolkata bench of the National Company Law Tribunal (NCLT), which had asked the resolution professional (RP) and the committee of creditors (CoC) to consider the revised offer of UltraTech Cement for beleaguered Binani Cement. The appellate tribunal, however, refused to pass any interim stay order.
The NCLAT listed the matter for hearing on May 22.
On Friday, Dalmia Bharat filed an application before the appellate tribunal, challenging the NCLT order dated May 2. Passing an order on the ongoing resolution process for Binani Cement, the Kolkata bench of the tribunal had asked the RP, Vijaykumar V Iyer, to accept the revised offer of around Rs 7,900 crore from UltraTech Cement within three days. The bench had also directed the CoC to consider the revised offer along with the resolution plan of the country’s largest cement maker, bringing it back in the race for acquiring Binani. The bench also offered RPPL a chance to better its offer of `6,930 crore and compete for the asset.
Hearing the matter, a two-member bench of justices SJ Mukhopadhaya and Bansi Lal Bhatt of the appellate tribunal declined to grant an interim stay of the NCLT order.
“The NCLAT today said any decision of the RP and the CoC shall be subject to outcome of the appeal,” said lawyers who were present during the hearing. Dalmia Cement (Bharat) group CEO Mahendra Singhi was unavailable for comment on Friday’s development.
A source aware of the matter said that with the appellate tribunal refusing to pass any interim stay order, the RP can now call a CoC meet to consider UltraTech’s revised offer. “This all-important CoC meet can take place either on Saturday or on Monday,” the person told FE, requesting anonymity. Iyer was not available for comment.
Notably, UltraTech Cement had improved its offer to around Rs 7,960 crore after submitting an earlier revised bid of over Rs 7,200 crore to the RP on March 8. RPPL’s Rs 6,930-crore bid, which includes infusion of working capital and capex, was declared the highest bid (H1) on February 27. UltraTech had claimed that negative points had been wrongly assigned to its bid, making it the H2 and not H1 bidder.
Justices Jinan KR and Madan Balachandra Gosavi observed in their order May 2 order: “It is made clear that if both resolution applicants are willing to participate in the bidding process, CoC is expected to allow both resolution applicants in the bidding process” and go with the bidder “best for revival of the corporate debtor as decided by the CoC”.
Binani Cement has a manufacturing capacity of 11.25 million tonnes of cement per year with integrated plants in India and China, and grinding units in Dubai. As per details on Binani Cement’s website, financial creditors of the company had claimed Rs 6,470.26 crore, while the NCLT had admitted claims worth Rs 6,469.36 crore.
Dues to operational creditors, they claim, amount to be about Rs 510 crore. The Kolkata bench of the NCLT had admitted the insolvency petition against Binani Cement on July 25, 2017, after Bank of Baroda referred the company to the bankruptcy court. In FY17, Binani Cement had posted a net loss of Rs 348 crore on revenues of Rs 1,527 crore, according to data from Capitaline.