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Bids for Binani Cement: SC rejects Dalmia plea for stay on NCLAT order

Team SoOLEGAL 11 May 2018 3:57pm

Bids for Binani Cement: SC rejects Dalmia plea for stay on NCLAT order

New Delhi: Who will ultimately get control of debt ridden Binani Cement is not yet clear as the legal slugfest continues.SC rejected the plea of Dalmia Cement for stay against National Company Law Appellate Tribunal’s (NCLAT) May 4 order, which allowed the resolution professional (RP) and the committee of creditors (COC) of Binani Cement to consider the bid of UltraTech Cement. While rejecting Dalmia Bharat’s plea justice Rohinton Nariman requested the NCLAT to decide Dalmia Bharat’s petition expeditiously on a day-to-day basis.

But in a strange move, scheduled meet of committee of creditors was cancelled by the Resolution Professional (RP) Vijaykumar Iyer after Damia Cement in a letter questioned the eligibility of Ultratech Cement to participate in bidding process under Section 29A of the IBC.

 The NCLAT’s interim order issued on May 4 had stated that during the pendency of Dalmia Bharat’s appeal, the CoC can approve any plan it deems fit but that will be subject to its final decision. The NCLAT is slated to hear the matter on May 22.

The RP said, "As per the requirements of the code and the principles laid down by various NCLTs, I have taken cognizance of the objections and will review the facts and the law and take such other measures as is necessary to make my determination on the matter”. He said in the letter that in view of the objections raised and to make an “independent, careful, fair and reasoned determination”, he was informing the CoC members that the meeting scheduled on May 10 in Mumbai “stands cancelled”.

Ultratech Cement management called the allegation made by Dalmia Cement as baseless and said these are being made to delay the insolvency process as Dalmia Cement is unable to match or exceed the bid made by us.

Dalmia Bharat-controlled Rajputana Properties had made an offer of Rs 6,930 crore which according to an order by Kolkata bench of NCLT they can still revise. Ultratech had made an offer of Rs 7,200 crore which they later raised Rs 7,900 crore. COC will meet soon to decide on the offers.

According to Binani Cement's website, company had debts of Rs 6,470.26 crore, while the NCLT claimed  debts worth Rs 6,469.36 crore.

Tagged: SC   NCLAT   UltraTech   Dalmia Bharat   COC  
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