MUMBAI:In a setback to Binani Industries, the National Company Law Appellate Tribunal (NCLT), dismissed its contempt petition initiated against the resolution professional in charge of its distressed cement subsidiary Binani Cement Ltd.
In its petition, the company claimed that the resolution professional gave them a one-day notice for the meeting that was to be held on March, 14 as against the one-week notice. Besides, the petitioner alleged that no relevant documents were provided to them prior to the meeting.While the appellate tribunal in its order said that the contempt plea was not maintainable, it, however, allowed the parent firm Binani Industries to raise the issues at the NCLT (Kolkata), where the insolvency proceedings against Binani Cement are underway. The resolution process is mired in a complex legal tangle with at least 14 petitions filed against the company.
These petitions have been filed by Binani, UltraTech Cement Ltd, which entered into a buyout agreement with Binani Cement, the resolution professional alleging falsification of data, banks, operational creditors and winning bidder Dalmia Bharat Ltd, which filed an affidavit.The Committee of Creditors (CoC) chose the Dalmia Cements-led consortium as the winning bidder for Binani Cements, but the latter sought the tribunal’s permission to terminate the resolution process as it signed a buyout agreement with UltraTech Cements for Rs 7,200 crore.According to sources, Dalmia Cement’s proposal will help recover only Rs 4,500 crore.