NCLAT had ruled in favour of the revised resolution plan for Rs. 7,950 crore
The Supreme Court on Monday upheld the National Company Law Appellate Tribunal’s (NCLAT) order that approved the revised bid of Aditya Birla group firm UltraTech Cement for acquiring debt-ridden Binani Cement at Rs. 7,950 crore. A Bench of Justices R.F. Nariman and Navin Sinha dismissed the plea of Dalmia Group-led Rajputana Properties Pvt. Lid. challenging the decision of the NCLAT. Last week, the tribunal went in favour of the revised Resolution Plan submitted by UltraTech Cement, noting that it had taken care of maximisation of the assets of the ‘Corporate Debtor’ and also balanced the claim of all the stakeholders of the ‘corporate debtor’. The NCLAT rejected the rival bid by Rajputana Properties saying it was “discriminatory” to some of the creditors of Binani Cement.
Initial top bidder
Initially, Rajputana had emerged as the top bidder with an approximate Rs. 6,932 crore, but UltraTech revised its bid to about Rs. 7,950 crore. The insolvency case against Binani Cement was initiated in July last year. The firm owes about Rs. 7,000 crore to financial and operational creditors. In April, the Supreme Court had refused UltraTech Cement to go ahead for an out-of-court settlement for bankrupt Binani Cement. Binani Industries, the parent of Binani Cement, had then reached an out-of-court deal with the Aditya Birla Group firm to sell Binani Cement for Rs. 7,266 crore and approached the top court seeking its approval. Later, in May this year, the Kolkata bench of the National Company Law Tribunal held the resolution plan submitted by Rajputana Properties Private Limited to be discriminatory. The Supreme Court also refused to entertain Rajputana Properties’ plea challenging an NCLAT order that refused to stay UltraTech Cement’s revised bid from being considered in the ongoing resolution process for Binani Cement.