The National Company Law Appellate Tribunal (NCLAT) on Tuesday directed Binani Cement’s resolution professional not to decide on the eligibility of the bidders, but just to pass on the revised resolution plans in sealed covers to the committee of creditors (CoC). The NCLAT also asked the RP to submit his view on questions pertaining to the bidders’ eligibility in conformity with the Insolvency and Bankruptcy Code (IBC) to the CoC, that too in a sealed cover, without consulting any of the parties interested in taking over the bankrupt cement-maker.
NCLAT, however, asked the CoC to furnish reasons for “approving one or the other resolution plan”, to be submitted before the NCLT. However, it added that the resolution plan would be subject to the outcome of Dalmia’s plea before the appellate tribunal. Dalmia moved the NCLAT challenging the NCLT order that asked the CoC to consider the revised offer of around Rs 7,900 crore from UltraTech Cement.
The appellate tribunal on Tuesday heard Ultratech’s plea seeking its direction to the RP to call a lenders’ meet in order to consider its revised bid for Binani Cement. In its May 2 order, the Kolkata bench of the NCLT also offered the Dalmia Bharat-controlled Rajputana Properties a chance to better its offer of Rs 6,930 crore.
Last week, the RP cancelled the lenders’ scheduled meet after rival bidder Dalmia Bharat in a letter to him raised the issue of UltraTech’s ineligibility under Section 29A of the IBC.
Dalmia Bharat had raised objections to UltraTech’s bid, alleging that the latter had become ineligible to participate in the auction after acting in concert with Binani Industries, promoter of Binani Cement, to exit the insolvency process. The next CoC meet is slated for May 18.