NCLAT Allows Parties To Settle Dispute Over Binani Cement Sale
NCLAT allowed the parties in Binani Cement insolvency dispute to amicably resolve the issue.
The National Company Law Appellate Tribunal today allowed the parties in dispute over selling of debt-ridden Binani Cement Ltd. to amicably settle the dispute.
A two-member bench of the appellate tribunal headed by Justice SJ Mukhopadhaya gave liberty to the parties entangled in vexatious litigations, to settle the case amicably.
“We give liberty to parties to reach settlement and approach appropriate forum for approval of the settlement,” the NCLAT bench said.
The appellate tribunal was hearing a petition filed by Binani Industries Ltd., which holds over 90 percent stake in Binani Cement.
“Learned counsel for the appellant submitted that appellant has offered a better amount that is 100 percent approximately of the dues to the Committee of Creditors,” the court said.
As per the Insolvency and Bankruptcy Code, after a resolution plan is approved by the the Committee of Creditors, it is forwarded to NCLT for approval.
Earlier, on March 27, the Kolkata bench of the NCLT had also suggested that the parties go for an out-of-court settlement.
While Dalmia Bharat has offered Rs 6,500 crore for Binani Cement, UltraTech Cement Ltd. of the Aditya Birla Group, which had entered into a bilateral pact with the promoters of Binani, agreed to pay Rs 700 crore more.
Binani Cement owes around Rs 7,000 crore to its creditors.
The dispute relates to UltraTech Cement’s allegations that the process for choosing the top bidder was not transparent and that the resolution professional had not followed established best practices. Dalmia Bharat Ltd. was declared the top bidder.
UltraTech then moved NCLT and also wrote to Binani Cement’s resolution professional, offering to increase its bid price. But when it was not accepted, UltraTech struck a deal with Binani Industries to buy its 98.43 percent stake in the cement unit, provided the insolvency case was terminated.
Binani Industries then approached NCLT asking that the case be terminated.
Watch this interview with Sameer Kaji, adviser to Binani Industries.