New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Tuesday directed Rajputana Properties Pvt. Ltd to file a rejoinder to the queries raised by UltraTech Cement Ltd pertaining to the insolvency resolution of the debt-ridden Binani Cement Ltd. UltraTech Cement and the Dalmia Bharat-controlled Rajputana Properties have submitted bids for acquiring Binani Cement.
The operational and financial creditors of Binani Cement appeared before the tribunal on Tuesday and expressed discontentment with the resolution plan submitted by Rajputana Properties calling it “unjust" and “discriminatory".
However, a two-judge NCLAT bench headed by Justice S.J. Mukhopadhyay said, “Maybe the plan is not just and proper, but the plan is good. It is fulfilling all the conditions but the offer may be bad."
The appellate tribunal said that it will hear the resolution professional of Binani Cement along with Rajputana Properties on 13 August.
Last month, the Supreme Court had directed the 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.
Rajputana Properties had moved the NCLAT in May against the 2 May order of the 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 ₹ 6,930 crore.
UltraTech Cement’s revised offer was ₹ 7,900 crore, against its earlier bid of ₹ 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 the NCLT in July 2017 for resolution under the IBC, owes more than ₹ 6,500 crore to its lenders.