SC directs Binani Cement lenders to proceed with debt resolution process
PrintListen to this Article
“All we want is that no final order should be passed till 2nd July, the next date of hearing in the case in the apex court”, said former solicitor general Gopal Subramanium, on behalf of Dalmia Cement.
Senior advocate Abhishek Manu Singhvi, representing UltraTech Cement Ltd (one of the bidders) argued, “We have offered Rs1,000 crore more than Dalmia Cement. It has 90% haircut from SBI lenders and income tax department”.
The two-judge vacation bench was hearing an appeal brought by Dalmia Bharat Ltd-controlled Rajputana Properties Pvt. Ltd (RPPL) against a 15 May order of the National Company Law Appellate Tribunal (NCLAT) allowing the CoC to consider a revised offer for Binani Cement put forth by UltraTech Cement.
The order had also prohibited the resolution professional for Binani Cement from seeking an opinion from the resolution applicants and other parties on the questions of eligibility.
Simultaneously, it has challenged a 22 May order of the NCLAT that refused to stay the corporate insolvency resolution process for Binani Cement. RPPL has sought stay of both the NCLAT orders on an urgent basis.
Dalmia Bharat has offered to pay Rs6,932.46 crore for Binani Cement whereas UltraTech has raised its bid to Rs7,960 crore and claimed that, in the interest of all stakeholders, its bid should be considered by the lenders.
Seeking urgent listing of the matter and for it to be heard on a day-to-day basis, Rajputana Properties sought stay of the impugned orders directing the resolution professional and CoC to consider the resolution plans as per the guidelines prescribed under the 15 May order.
The appeal holds that through the impugned orders of 15 May and 22 May, NCLAT has erroneously laid down a procedure unknown to the statutory framework devised for the purpose of evaluation of a resolution plan by eliminating scrutiny regarding its legality and eligibility of a resolution applicant under Section 30(3) and 29A of the Insolvency and Bankruptcy Code, 2016 (IBC).
The effect of the 15 May order is that while the legality and correctness of the rejection of a resolution plan submitted by the applicant is pending adjudication before the adjudicating authority, the CoC has been allowed to consider the revised offer of an unsuccessful resolution applicant (UltraTech), it was stated.
On 15 May, an NCLAT bench headed by Justice S.J. Mukhopadhyay had asked the resolution professional to submit the revised resolution plans for the corporate debtor in a sealed cover before the CoC along with his opinion on questions pertaining to conformity with the IBC. The appellate tribunal further asked the CoC to record reasons for accepting or refusing a resolution plan, as well as the opinion of the board of directors.
The matter will be heard next on 2 July. #casansaar (Source - LiveMint)
Category : Insolvent Professional | Comments : 0 | Hits : 427
The National Company Law Tribunal (NCLT) on Monday ordered insolvency proceedings against media baron Subhash Chandra on a plea filed by Indiabulls Housing Finance. A two-member Delhi bench of the NCLT directed initiation of personal insolvency proceedings against Zee Entertainment Enterprises Ltd (ZEEL) Chairman Emeritus Chandra, who was a guarantor for a loan given to Essel group firm Vivek Infracon Ltd. The NCLT bench, consisting members Ashok K Bhardwaj and Subrata K Das,...
IBBI invites suggestions to simplify, ease & reduce cost of compliance of Regulations notified under IBC
The Insolvency and Bankruptcy Board of India (IBBI) invites suggestions/comments from public and regulated entities, on the Regulations for simplifying, easing and reducing cost of compliance. The suggestions are invited in pursuance of the announcement made in the Union Budget for FY 2023-24 by the Union Finance Minister: “To simplify, ease and reduce cost of compliance, financial sector regulators will be requested to carry out a comprehensive review of existing regulations. For th...
Govt considers giving financial creditor status to insurers issuing surety bond during resolution
To make surety bond business more attractive, the government is looking at making relevant changes in the Insolvency and Bankruptcy Code (IBC) to consider insurers as financial creditor in case of default of infra projects. The surety bond issued by a general insurance company is a three-party contract by which one party (the surety) guarantees the performance or obligations of a second party (the principal) to a third party (the obligee). The surety is a company that provides the fina...
The National Company Law Tribunal Delhi recently observed that the Insolvency and Bankruptcy Code cannot be used as a recovery tool. “We are of the view that in the present case the applicants are already having demands drafts of amount exceeding the defaulted amount in this petition and moreover IBC cannot be used as a tool for recovery; the settlement has been arrived between the parties. The amount has been paid in excess of the default amount and Ld. Counsel for the applicant has al...
India’s turbulent aviation sector will likely see another player go belly up with Go First of the Wadias filing for voluntary insolvency before the National Company Law Tribunal (NCLT). The budget carrier said it is cancelling all flights on May 3, 4, and 5 and will refund the full fares to the passengers. The Directorate General of Civil Aviation (DGCA) has questioned the cancellation and issued a show-cause to the airline. Go First has been asked to submit its response within 24 ho...
Comments