The National Company Law Appellate Tribunal today declined to order a status quo on bids to maximise the offer for debt-ridden Binani Cement Ltd. by the two resolution applicants – UltraTech Cement Ltd. and Dalmia Bharat group.
The appellate tribunal said the final outcome of the bids to maximise the value would be subject to the outcome of Dalmia’s petition filed before it. “In the pendency of the order... interim orders passed earlier will continue,” said an NCLAT bench headed by Chairman Justice SJ Mukhopadhaya.
The appellate tribunal will hear the matter on July 10.
The NCLAT was hearing a batch of petitions filed against the Kolkata bench of the NCLT, which had declined to approve the bids of Dalmia Bharat group’s Rajputana Properties for Binani Cement. The NCLT had asked Binani Cement lenders to consider the bid of Aditya Birla group firm UltraTech, which was higher by around Rs 1,100 crore. It had also given Dalmia Bharat an opportunity to match it.
During the proceedings, Senior Advocate Gopal Subramanium appearing for Dalmia Bharat said UltraTech was ineligible under Section 29(A) to bid for Binani Cement under the Insolvency and Bankruptcy Code.
However, this was opposed by Senior Advocate Mukul Rohatgi, appearing for UltraTech. “There is no ground to term us as ineligible. Rajputana is asking for grounds to oust us because they can not oust us on money,” he said. Rohatgi further said Ultratech had put forth a bid of Rs 7,600 crore, which was Rs 1,100 crore more than Rajputana.
Subramanium said Rajputana Properties is being asked to match the offer. “We are being pressed by the CoC (to match the offer),” he said requesting the tribunal to grant status quo on process till the next hearing.
However, the NCLAT declined to stay and directed all the parties to file a written submission why they are eligible and the other party is not.