NCLAT directs Binani Cement resolution professional to give comments on revised bids

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 the 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 the RP would only hand over its comments over questions pertaining to conformity with the Insolvency and Bankruptcy Code (IBC) on the revised bids to the Committee of Creditors (CoC). “RP will examine each plan and give comments but cannot 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 the 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 the UltraTech counsel, submitted that the RP deciding over the eligibility of bids will give rise to “parallel proceedings with the case in NCLAT.”