Companies

Binani Cement case: Dalmia moves SC against NCLAT order

Suresh P Iyengar Mumbai | Updated on September 13, 2019 Published on November 15, 2018

Case will come for hearing on Nov 19

Dalmia Cement has filed a petition in the Supreme Court against the National Company Law Appellate Tribunal (NCLAT) order approving the revised bid placed by UltraTech Cement as the highest bidder for buying out the stressed Binani Cement asset.

The case will come up for hearing on Monday (November 19), said Mahendra Singhi, Managing Director and CEO, Dalmia Cement (Bharat), without committing on whether the company will raise its bid to match that of UltraTech Cement.

On Wednesday, NCLAT approved UltraTech Cement’s revised bid of ₹7,900 crore for Binani Cement over an offer of ₹6,930 crore by Rajputana Properties, though it was declared as highest bidder by the Committee of Creditors earlier.

The Aditya Birla Group company UltraTech Cement initially placed a bid of ₹6,500 crore for Binani Cement, much lower than that made by Dalmia Bharat Cement. However, UltraTech revised its offer by ₹700 crore to ₹7,200 crore and further to ₹7,840 crore, thus covering the entire debt and interest of all the debtors.

Dalmia Cement did not revise its offer even after getting an opportunity from CoC. Finally, the CoC approved UltraTech as the highest bidder and submitted the plan to NCLT for approval.

In July, Dalmia Cement filed a petition in the Supreme Court against NCLT order declaring UltraTech as the highest bidder. Hearing the petition, the apex court transferred multiple cases relating to corporate insolvency of Binani Cement to the NCLAT from National Company Law Tribunal, Kolkata, for faster resolution.

Published on November 15, 2018
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