NCLT Kolkata Rejects Resolution Plan Of Dalmia Group For Binani Cement
In a significant order in the highly-contested insolvency proceedings between Dalmia Group, and Binani Industries and Ultra Tech for the resolution of Binani Cement, the NCLT Calcutta on Wednesday directed the Committee of Creditors (CoC) to consider the revised offer from Ultra Tech within 3 days. Earlier, Live Law had reported about the case here.
The significant directions are:
- Resolution Professional is directed to consider the revised offer of Ultra Tech and to place it before the CoC along the Resolution Plan within 3 days.
- The CoC is directed to consider revised offer by giving opportunity to have a hearing, if any, to further modification of the offer, if found necessary.
- The CoC is directed to re-consider the Resolution Plan of Dalmia Group, (Resolution Applicant) in case applicant is willing to raise its offer above the offer of Ultra Tech.
- Resolution Professional is directed to comply with provisions of code in submitting the revised offer and issue notice to Director of suspended Board of Corporate Debtor and notice to one of the Operational Creditors in representative capacity.
The resolution application submitted by Rajputana Property Pvt. Ltd. (Dalmia Group) was strongly opposed by Ultra Tech which was the second highest bidder (H-2 Bidder), SBI-Hong Kong Branch, Exim Bank and other operational creditors.
In the Resolution Plan submitted by Dalmia Group, SBI-Hong Kong was offered just 10 percent of its verified claim and Exim Bank was offered 70 percent of its verified claim.
The Ultra Tech, through its revised offer, had offered 100 percent payment of verified claims of all secured and unsecured creditors. Edelweiss ARC and Dalmia Group had strongly opposed this revisited offer of Ultra Tech arguing that the revised offer should not be accepted as per provisions of the Insolvency & Bankruptcy Code (IBC). However, the NCLT has given opportunity to both the contesting parties for revising their offers for a better resolution plan, as per the objective of the Code.