Failed Bidder Mustn't Misuse India Bankruptcy Rules, Lawyer Says
(Bloomberg) -- Binani Industries Ltd.’s withdrew its petition to settle dues on its stressed cement asset outside the insolvency process after the top court indicated it’s unlikely to grant the company’s request.
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Here’s Shardul S. Shroff, executive chairman of law firm Shardul Amarchand Mangaldas & Co, which represented Dalmia Bharat group, on the import of top court’s order.
- “It is a clear indication from the Supreme Court that let the process of insolvency, which is time bound, go ahead in accordance with the speed which is stated in the law and let it not be diverted or side tracked by procedure where a disqualified bidder is collaborating with a promoter to try and scuttle the whole game,” Shroff said.
- “Tribunals also need to be careful that they are not being misused by a losing party or by a promoter. They must be cautious of the fact that ultimately their duty is to the company and to revive the company.”
- “The battle for victory is not the end game for the resolution plan. The battle to revive the company is the end game and, therefore, to be caught up by these kind of challenges and attempts by losing bidders to somehow or the other get back into the game, these things should be avoided by the tribunal.”
- “How much time is lost in this whole process. The resolution plan was approved in March and you lost a month.”
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