Binani Industries cannot now repay dues and settle; UltraTech Cement’s revised resolution plan for Binani Cement accepted: NCLAT

National Company Law Appellate Tribunal (NCLAT): A Two-Member bench comprising of S.J. Mukhopadhya (Chairperson) and Bansi Lal Bhat, Member (Judicial) disposed of a set of company appeals by directing National Company Law Tribunal, Kolkata to set up a monitoring committee for implementation of the approved revised resolution plan for Binani Cement Ltd. submitted by UltraTech Cement Ltd.

The appeals arose out of the order of the NCLT wherein it rejected the resolution plan submitted by Rajputana Properties (P). Ltd. after Corporate Insolvency Resolution Process was commenced for Binani Cement under Insolvency and Bankruptcy Code, 2016. The said plan was approved by the Committee of Creditors which was challenged by certain creditors alleging that they were not dealt with equitably as compared to Financial Creditors. While adjudication, NCLT accepted the contention of the said creditors and also observed that the Committee had not given proper consideration to the revised resolution plan submitted by UltraTech Cement. Resultantly, NCLT rejected the plan of Rajputana Properties and directed the Committee to consider UltraTech’s plan in accordance with the provisions of I&B Code.

The Appellate tribunal after perusing various provisions of the code as also the record of the case noted that Rajputana’s plan was indeed discriminatory against the abovesaid creditors when compared to Financial Creditors and was thus inconsistent with the provisions of I&B Code. Furthermore, finding of NCLT regarding improper consideration of UltraTech’s revised plan was also upheld by the Appellate Tribunal. It was noted that after NCLT’s order, the Committee had considered the revised plan submitted by UltraTech which was approved. Also, in an appeal filed by Binani Industries, it was held that Corporate Insolvency Resolution Process had started on admission of an application under Section 7, 9 or 10, the same cannot be set aside, except for illegality to be shown. Accordingly, plea of Binani Industries to repay the dues of creditors and settle the matter was dismissed.

In view of the aforesaid, the appeals filed by Rajputana Properties and Binani Industries were dismissed. The revised plan submitted by Ultra tech Cement which was already approved by the Committee of creditors was accepted and NCLT, Kolkata was directed to constitute a committee for the implementation of the same. The appeals were disposed of accordingly.[Binani Industries Ltd. v. Bank of Baroda,2018 SCC OnLine NCLAT 521, dated 14-11-2018]

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