The National Company Law Appellate Tribunal (NCLAT) today refused to stay the NCLT proceedings on the resolution process of debt-ridden Binani Cement.
The National Company Law Appellate Tribunal (NCLAT) today refused to stay the NCLT proceedings on the resolution process of debt-ridden Binani Cement. The appellate tribunal, however, admitted the petition filed by Binani Industries who has sought all documents related to the resolution process undertaken by the Committee of Creditors of Binani Cements. Over proceedings at the National Company Law Tribunal, Kolkata, Mukhopadhaya said: “We would not stay proceedings of NCLT at this stage and if they pass any order it has come to us finally.” The tribunal also said it would decide on the nature of 29 A of the Insolvency & Bankruptcy Code (IBC).
“We would decide under what circumstances section 29 A would be applicable. Whether it is mandatory or directory or partly mandatory or partly directory,” said the NCLAT bench headed by Chairman S J Mukhopadhaya. The tribunal has fixed May 9 as the next date of hearing. “Intent of the legislation is maximisation of the value of asset,” the bench said adding that it would decide that whether under section 29 A, the Committee of Creditor “can refuse to accept the maximum bids”.
Binani Industries, which has 98.43 per cent stake in Binani Cements had moved a plea before NCLT Kolkata seeking access to all documents related to the resolution process selected by the Committee of Creditors (CoC). The plea was rejected by the Kolkata bench of NCLT, following which it moved to NCLAT.