NCLAT Okays UltraTech Cement’s Revised Resolution Plan For Binani Cement [Read Judgment]

NCLAT Okays UltraTech Cement’s Revised Resolution Plan For Binani Cement [Read Judgment]

The National Company Law Appellate Tribunal (NCLAT) on Wednesday approved the revised resolution plan submitted by Ultratech Cement for debt-ridden Binani Cement.

The NCLAT bench comprising NCLAT Chairperson, Justice SJ Mukhopadhaya, and Judicial Member, Justice Bansi Lal Bhat accepted Ultratech’s plan, while ruling that the plan submitted by the rival Dalmia Bharat group firm Rajputana Properties was “discriminatory” against some financial creditors and did not balance other stakeholders such as the operational creditors of Binani Cement.

The insolvency proceedings against Binani Cement were initiated by Bank of Baroda before Kolkata NCLT in July last year. Thereafter, while Rajputana Properties had emerged as the top bidder for acquisition of assets of Binani Cement, UltraTech, which was the second highest bidder, came back with a revised higher offer, backed by the original promoters of Binani Cement.

Then, in May this year, the National Company Law Tribunal (NCLT), Kolkata Bench had directed the Resolution Professional and Committee of Creditors (CoC) for Binani Cement to consider UltraTech’s revised offer of Rs 7,900 crore within three days. The NCLT had further allowed Rajputana Properties to revise its resolution plan.

Dalmia Group had then appealed this decision before the NCLAT, which, in an interim order, had reiterated the NCLT judgment. This interim order was challenged by the Dalmia Group in the Supreme Court.

The Apex Court had, however, declined to interfere at that stage and had directed NCLAT to decide on the objections of all parties in the case.

The NCLAT now noted that after the NCLT order, the members of the CoC had unanimously voted in favour of the revised plan submitted by Ultratech.

“In exercise of powers conferred by Section 31 of the ‘I&B Code’ read with order of remand by the Hon’ble Supreme Court, we have gone through the records, revised ‘Resolution Plan’ submitted by ‘Ultratech Cement Limited, gist of which noticed earlier and being satisfied that the ‘Resolution Plan’ approved by the ‘Committee of Creditors’ under subsection (4) of Section 30 in its 17th meeting held on 28th May, 2018 meets the requirements as referred to in sub-section (2) of Section 30, we approve the revised ‘Resolution Plan’ submitted by ‘Ultratech Cement,” it then ruled.

You may read: Insolvency Litigation, High Stakes, Big Battles, Hair Cuts and Head Cuts by Sunil K. Tripathi

Read the Judgment Here