While the committee of creditors (CoC) of Binani Cement is expected to consider a revised offer from UltraTech Cement along with the company’s resolution plan for the debt-laden cement maker on Monday, rival Dalmia Bharat-controlled Rajputana Properties has again moved the Supreme Court, challenging an order of the National Company Law Appellate Tribunal (NCLAT) in this case.
Filing a petition in the apex court on Friday, Rajputana Properties (RPPL) is understood to have challenged the appellate tribunal’s order, which had laid out the procedure for conducting the resolution process to be followed by the resolution professional (RP), Vijaykumar V Iyer, and the committee of creditors of the bankrupt cement maker.
Passing an order on May 15, the NCLAT had said, “…while we direct the resolution professional not to take any comment from one or other resolution applicant (s), if such step has been taken be ignored.”
The appellate tribunal had directed Iyer not to decide on the eligibility of the bidders, but just to pass on the resolution plans in sealed covers to the CoC. It had also asked the CoC to furnish reasons for “approve one or the other resolution plan,” to be submitted before NCLT.
The appellate tribunal on May 15 was hearing UltraTech’s plea, seeking its direction to the RP to call a creditors’ meet in order to consider its revised bid of around Rs 7,900 crore for the insolvent cement maker.
Notably, the CoC meet is rescheduled for May 28. Earlier, the meet was scheduled for May 24.
According to the agenda of the meet, the creditors will consider the revised offer of UltraTech with its resolution plan. The meeting may witness voting for the revised offer of the Aditya Birla Group company.
Significantly, Rajputana Properties has not raised its offer of around Rs 6,930 crore for the debt-laden cement maker. Dalmia Bharat wrote a letter to the RP on last Tuesday, saying, “The CoC cannot even consider UltraTech’s resolution plan without first deciding UltraTech’s eligibility under Section 29A of the Insolvency and Bankruptcy Code, and accordingly, there is no question of proceeding further or requiring RPPL to match, until UltraTech is found to be eligible.”
On May 2, the Kolkata bench of the NCLT had asked the RP and CoC to consider the revised offer from UltraTech. It also offered Dalmia Bharat a chance to better its offer. Following the NCLT’s order, Dalmia Bharat moved the NCLAT against the NCLT’s order. However, the appellate tribunal refused to pass any interim stay order. Dalmia Bharat then moved the Supreme Court seeking a stay on the NCLAT’s order. The apex court rejected the plea.
The Kolkata bench of the NCLT had admitted the insolvency petition against Binani Cement on July 25, 2017. Bank of Baroda had referred the company to the bankruptcy court.