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Binani Cement Insolvency: Dalmia Bharat Moves Supreme Court Against NCLAT Nod To UltraTech’s Bid

Confident of a favourable Supreme Court ruling, says Dalmia Bharat Group CEO. 



A woman worker carries a plate full of cement-concrete mix on her head at a construction site in New Delhi, India. (Photographer: Amit Bhargava/Bloomberg News)
A woman worker carries a plate full of cement-concrete mix on her head at a construction site in New Delhi, India. (Photographer: Amit Bhargava/Bloomberg News)

The Dalmia Group moved the Supreme Court challenging the National Company Law Appellate Tribunal’s approval for the sale of Binani Cement Ltd. to UltraTech Cement Ltd.

A three-judge bench headed by Chief Justice Ranjan Gogoi agreed to Dalmia's plea for an early hearing, and listed the case for Nov. 19, Bloomberg reported.

The group is confident of getting a favourable verdict from the apex court, Dalmia Bharat's Group Chief Executive Officer Mahendra Singhi told BloombergQuint in an interview. Singhi, however, refused to share details of the grounds on which the group challenged the NCLAT's order, saying that that matter was sub judice.

On Wednesday, the appellate tribunal approved UltraTech Cement’s plan to acquire debt-laden Binani Cement, holding that the rival bid by Dalmia Group was “discriminatory” to creditors of the stressed cement maker.

Dalmia Bharat-led Rajputana Properties had initially emerged as the top bidder for acquisition of assets of Binani Cement. Later, UltraTech, the second highest bidder, came back with a higher offer, backed by the original promoters of Binani Cement.

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Watch the conversation with Mahendra Singhi here: