Kolkata: The resolution professional of Binani Cement Ltd. on Monday submitted the resolution plan of Ultratech Cement Ltd. at the Kolkata bench of the National Company Law Tribunal for its approval even as the tribunal agreed to hear Dalmia Bharat’s objections about Ultratech’s bid.
Counsel for the resolution professional submitted at the court that lenders of Binani Cement have unanimously approved Ultratech’s plan to take over the company. It was submitted that the committee of creditors had considered and rejected Dalmia Bharat’s allegations.
According to Dalmia Bharat, Ultratech is ineligible to bid for the assets of Binani Cement under section 29A of the Insolvency and Bankruptcy Code, which bars delinquent promoters from bidding for distressed assets. Dalmia Bharat argues that Ultratech is ineligible since it has been working with Binani Industries Ltd., the parent of the delinquent cement maker.
Resolution professional Vijaykumar V. Iyer had previously cancelled a CoC meeting scheduled on 10 May because he wanted to review Dalmia Bharat’s latest objections to Ultratech’s bid. However, Ultratech’s resolution plan was approved later by the lenders.
S.K. Kapoor, counsel for Dalmia Bharat sought the tribunal to direct the resolution professional to share Ultratech’s resolution plan with them. However, the tribunal has directed the administrator to share necessary details pertaining to the lenders’ observations about Dalmia Bharat’s objections only.
Counsel appearing on behalf of Ultratech Cement Siddhartha Mitra submitted that both the National Company Law Appellate Tribunal and the Supreme Court have asked the lenders to continue with the resolution process. However their decision will be subject to the verdicts of these appellate authorities. Dalmia Bharat had moved these courts seeking a stay on the resolution process.
The Dalmia Bharat-led consortium had offered Rs6,932.46 crore to take over Binani and was declared the highest bidder. While Ultratech had bid at least Rs50 Crore lower originally, it later revised its bid to Rs7,950 crore. This led to a protracted legal battle. The Kolkata bench of the NCLT ordered the lenders to reconsider both bids and allow Dalmia Bharat to match Ultratech’s bid if it wished to. “It is made clear that if both (companies) are willing to participate in the bidding process, the committee of creditors is expected to allow both in the bidding process,” the tribunal had said in its order of 2 May.
The NCLAT is supposed to hear Dalmia Bharat’s plea from 10 July on a daily basis. The Kolkata bench intends to conclude its hearing before that. It will hear the matter again on 18 June.