NCLAT reserves judgment on Binani insolvency matter
NCLAT asks all parties, including Rajputana Properties and UltraTech Cement , to submit additional written responses, if any, by 4 September
New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Thursday reserved its judgment on the Binani insolvency matter, as it concluded hearing various appeals related to the matter.
The two-judge NCLAT bench headed by Justice S.J. Mukhopadhyay also directed all parties concerned, including Rajputana Properties Pvt. Ltd. and UltraTech Cement Pvt. Ltd., to submit their additional written responses, if any, by 4 September.
Appearing for UltraTech, lawyer Mukul Rohatgi argued before NCLAT that UltraTech’s plan was Rs. 1,000 crore more than Rajputana’s. “I am paying all operational creditors in full as opposed to their (Rajputana’s) plan,” claimed Rohtagi.
In its last hearing, the appellate tribunal had sought the payment terms for stakeholders, including financial and operational creditors of the debt-ridden firm, in the resolution plan submitted by Rajputana and UltraTech, respectively.
Last month, the Supreme Court had directed NCLAT to adjudicate upon all issues in the Binani Cement insolvency case, including the question of UltraTech Cement’s eligibility under Section 29A as well the legality of its bid, at the earliest. In doing so, the apex court transferred the matter from the NCLT’s Kolkata Bench to the insolvency appellate authority in New Delhi.
Dalmia Bharat-controlled Rajputana Properties had moved NCLAT in May against the 2 May order of NCLT, which allowed the resolution professional and Committee of Creditors (CoC) for Binani Cement to consider the revised resolution plan submitted by UltraTech, while offering Rajputana Properties an opportunity to revise its resolution plan of Rs 6,930 crore.
UltraTech Cement’s revised offer was Rs 7,900 crore, against its earlier bid of Rs 7,200 crore.
The NCLAT on 15 May refused to stall the insolvency process and asked the resolution professional to submit the revised resolution plans for the corporate debtor in a sealed cover before the CoC, along with his opinion on questions pertaining to conformity with the Insolvency and Bankruptcy Code (IBC).
Binani Cement, which was admitted by NCLT in July 2017 for resolution under the IBC, owes more than Rs 6,500 crore to lenders.