New Delhi: The Supreme Court on Monday upheld an appellate tribunal order approving UltraTech Cement’s resolution plan for beleaguered Binani Cement. A bench headed by Justice Rohinton Nariman rejected the petition of Dalmia Bharat-owned Rajputana Properties against the National Company Law Appellate Tribunal’s decision. Justice Nariman said there was no infirmity in the appellate tribunal order and UltraTech’s bid is much better than Rajputana Properties’.
Dalmia Bharat arm was the highest bidder in first round, back in February, with a bid of Rs 6,900 crore. But subsequently UltraTech raised its bid and National Company Law Tribunal, Kolkata, approved it. ON Monday, appearing for Rajputana Properties, lawyer Gopal Subramanian said a company cannot revise its bid after getting to know of the competitor’s winning bid. This is against the very spirit of insolvency laws.
He also accused promoters of Binani Cement of colluding with UltraTech. Appearing for Committee of Creditors, Solicitor General Tushar Mehta submitted that secured creditors, unsecured creditors as well as operational creditors have all backed UltraTech’s resolution plan. Appearing for UltraTech, senior lawyer Mukul Rohatgi submitted that UltraTech was not the only one to submit a revised bid, and even Rajputana Properties had submitted a revised bid.
Being the highest bidder in the first round doesn’t mean that it is the winning bid, till Committee of Creditors formally approves the bid, said Rohatgi. National Company Law Appellate Tribunal had on November 14 approved Rs 7,900 crore resolution plan put forth by UltraTech for assets of Binani Cement.The appellate tribunal had ruled that insolvency process should aim to extract the maximum value from auction of stressed assets.