Comments
Binani Industries in its submission before the Kolkata bench of National Company Law Tribunal (NCLT) on Monday said that it has filed an application before Supreme Court for setting aside the April 5 order passed by the National Company Law Appellate Tribunal (NCLAT). It has also prayed for the termination of insolvency proceedings against Binani Cement.
It is to be noted that on April 5, while posting the matter for further hearing on April 19, the NCLAT had directed the Kolkata bench of NCLT to consider the Binani Cement case only under the provisions of the Insolvency and Bankruptcy Code (IBC).
The counsel for Binani Industries, in its application before the Supreme Court, has requested for setting aside the NCLAT order and also prayed for the termination of IBC proceedings against Binani Cement.
Binani Industries’ counsel also informed that the Supreme Court will hear its case on April 13. After hearing the submission made by the counsel, the two-member bench of Kolkata NCLT, adjourned the hearing. The matter will be heard on April 16. Binani Industries, the parent company of stressed Binani Cement, had filed an application before the Kolkata bench of NCLT for a settlement outside the tribunal. The application was based on an in-principle understanding with UltraTech, which had offered to pay off all the dues to its creditors within two weeks subject to termination of insolvency proceedings.
The Kolkata bench of NCLT felt that the application filed by Binani was in the ‘larger interest of all creditors’ and directed the Committee of Creditors to consider the application for an out-of-court settlement. It had given the CoC time till April 8.
The CoC, had in its meeting on March 14, approved Dalmia Bharat’s wholly-owned subsidiary Rajputana Properties’ bid, which offered to pay around ₹6,350 crore for Binani Cement.
Dalmia Bharat officials, had earlier said that any out-of-court settlement, while a company undergoes bankruptcy proceedings, will set a bad precedent. In a letter to the CoC, Dalmia Bharat had said, “The CoC has no jurisdiction, power, authority or right under the Code to entertain and consider such a settlement proposal from BIL.”
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.