New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Wednesday approved the revised resolution plan submitted by UltraTech Cement for Binani Cement while rejecting the plan submitted by a subsidiary of Dalmia Bharat. The resolution plan submitted by Dalmia Bharat’s arm Rajputana Properties was rejected by the appellate tribunal as it was found “discriminatory” in nature against some financial and operational creditors.
It also rejected a plea by Binani Cements to consider their proposal for settlement.”It is a settled law that once the corporate insolvency resolution process is initiated by admitting the application under Sections 7 or 9 or 10, it cannot be withdrawn nor can be set aside except for illegality to be shown or if it is without jurisdiction or for some other valid reason,” the appellate tribunal said in its judgment.
Rajputana Properties had moved the Supreme Court against a decision by Binani Cement’s committee of creditors to endorse UltraTech Cement’s new bid for the debt-laden cement player. Earlier, Rajputana Properties had emerged as the successful bidder for the acquisition of assets of Binani Cement. However, UltraTech Cement, then the second-highest bidder, came up with an improved offer, backed by promoters of Binani Cement.
UltraTech Cement’s revised offer of Rs 7,960 crore, which includes a pledge to infuse Rs 350 crore as working capital, is Rs 1,000 crore higher than Dalmia Bharat’s offer. On July 2, the Supreme Court had transferred Binani Cement’s insolvency case to the appellate tribunal from the National Company Law Tribunal, and asked it to hear the case on a daily basis.