NCLAT directs RP to give comments only on revised bids of Binani Cement

The NCLAT today directed the resolution professional (RP) of Binani Cement not to decide over the eligibility of the revised bids but only submit its comments to the lenders.

The National Company Law Appellate Tribunal (NCLAT) made these remarks while hearing an application filed by UltraTech in the Binani Cement insolvency matter.

An NCLAT bench headed by Justice S J Mukhopadhyaya directed that RP would only hand over its comments over questions pertaining to conformity with the Insolvency and Bankruptcy Code (IBC) on the revised bids to Committee of Creditors (CoC).

"RP will examine each plan and give comments but can not give any opinion on the resolution plan," the bench said.

The bench further said his comments would be handed over to CoC in a sealed cover.

"CoC is required to approve one or another plan... They should record their reasons," the bench said.

It also added that any decision of CoC "would be subject to outcome of this appeal."

The appellate tribunal was hearing an application filed by UltraTech, which has submitted revised bids.

During the proceedings, senior advocate Mukul Rohatgi appearing for UltraTech Counsel submitted that RP deciding over eligibility of bids will give rise to "parallel proceedings with the case in NCLAT".

Earlier, on May 2 the Kolkata bench of the National Company Law Tribunal (NCLT) had directed the CoC of Binai Cements to consider UltraTech's revised bid and simultaneously had allowed Dalmia Bharat to match the higher offer made by the Adity Birla group firm.

Ultra Tech Cement's offer is Rs 1,021.70 crore more than that of the Dalmia Bharat Group's, the NCLT said.

Though the exact bid amount figures were not available, Ultra Tech's revised bid is around Rs 7,960 crore while of RPPL's offer is around Rs 6,900 crore.

NCLT had directed UltraTech to submit revised bid within three days to the resolution professional to be placed before the Binani Cement CoC, the NCLT said.