NCLAT concludes hearings in Binani case

By: | Published: August 31, 2018 3:53 AM

The National Company Law Appellate Tribunal (NCLAT) on Thursday concluded hearings in the Binani Cement matter and reserved its order. The Aditya Birla Group-led UltraTech Cement and the Dalmia Bharat-led Rajputana Properties are in race to gain control of the bankrupt firm.

Binani Cement owes around Rs 6,500 crore to its financial creditors.

The National Company Law Appellate Tribunal (NCLAT) on Thursday concluded hearings in the Binani Cement matter and reserved its order. The Aditya Birla Group-led UltraTech Cement and the Dalmia Bharat-led Rajputana Properties are in race to gain control of the bankrupt firm.

Concluding the hearings, the two-member NCLAT bench, headed by its chairperson justice SJ Mukhopadhaya, also directed all parties to submit their written submissions by September 4. Senior advocate Mukul Rohatgi, appearing on behalf of UltraTech, said the company has offered more than Rs 1,000 crore than that of Rajputana. The company will also pay all the operational creditors in full. The company is understood to have offered Rs 7,960 crore for Binani Cement. Binani Cement owes around Rs 6,500 crore to its financial creditors.

The Kolkata Bench of the NCLT had admitted the insolvency petition against Binani Cement On July 25, 2017. Bank of Baroda had referred it to the bankruptcy court. On March 14, the committee of creditors (CoC) approved Rajputana’s Rs 6,930-crore bid. However, on April 15, 2018, UltraTech improved its offer to Rs 7,960 crore and in April, it urged NCLT to reject Dalmia’s bid and accept its revised plan.

The Kolkata bench had on May 2, 2018, asked the RP and CoC to consider the revised offer from UltraTech. It also offered Dalmia Bharat a chance to better its offer. Following the NCLT’s order, Dalmia Bharat moved the NCLAT against the NCLT’s order.

On May 4, the NCLAT in an interim order allowed the RP and the CoC to consider the revised resolution plan submitted by UltraTech, while offering Rajputana an opportunity to revise its plan of Rs 6,930 crore. Rajputana then moved the Supreme Court seeking a stay on the NCLAT’s May 4 order. However, on July 2, the SC asked the tribunal to decide all issues related to the Binani insolvency case, including the eligibility criteria of UltraTech to file a revised bid.

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