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Business News/ Companies / News/  NCLAT allows parties to settle dispute over Binani Cement sale
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NCLAT allows parties to settle dispute over Binani Cement sale

A two-member bench of NCLAT gave liberty to the parties entangled in vexatious litigations, to settle the Binani Cement sale case amicably

Binani’s offer is worth Rs7,266 crore and promises to cover all secured and unsecured creditors without any haircut in the settlement. Photo: HTPremium
Binani’s offer is worth Rs7,266 crore and promises to cover all secured and unsecured creditors without any haircut in the settlement. Photo: HT

New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Tuesday asked the parties in dispute over sale of debt-ridden Binani Cement to amicably settle the conflict.

A two-member bench of the appellate tribunal headed by Justice S.J. Mukhopadhaya gave liberty to the parties entangled in vexatious litigations, to settle the case amicably. “We give liberty to parties to reach settlement and approach appropriate forum for approval of the settlement," the NCLAT said.

The appellate tribunal was hearing a petition filed by Binani Industries, which holds 98.43% share in Binani Cement. “Learned counsel for the appellant submit that appellant has offered a better amount that is 100 per cent approximately of the dues to the committee of creditors (CoC)," the court said.

As per the Insolvency and Bankruptcy code, after a resolution plan is approved by the committee of creditors (CoC), it is forwarded to NCLT for approval. Earlier, on 27 March, the Kolkata bench of NCLT had also suggested that the parties should go for a settlement.

The resolution professional of the debt-ridden firm had approved the bids from Dalmia Bharat group, which through its subsidiary had offered Rs6,350 crore along with 20% equity in BCL. Later, Aditya Birla group firm UltraTech Cement on 19 March, offered Rs7,266 crore to Binani Industries to buy their 98.43% shareholding in Binani Cements.

According to UltraTech, Binani Industries had made an offer of sale and transfer of its entire Binani Cement shareholding through a shares sale and purchase agreement. In this matter Binani Industries had made several allegations against the resolution professionals over their decisions to approve the offer from the Dalmia Bharat group. It has also challenged the decision of RP approving the bids of Dalmia Bharat group.

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Published: 03 Apr 2018, 07:40 PM IST
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