Economy

Binani Cement deal: SC won't intervene 'for now' in Dalmia-UltraTech tussle

Binani Cement deal: SC won't intervene 'for now' in Dalmia-UltraTech tussle”

However, on hearing the plea, the apex court had disallowed such an arrangement, forcing Binani to withdraw its plea to pull Binani Cement out of the insolvency resolution process.

Justice Nariman said that all these can be argued in the appellate tribunal which will next hear the case on May 22. It also gave a chance to Dalmia Bharat to match Ultratech's bid, and if required all parties-banks, Ultratech and Dalmia Bharat could meet across the table and have a form of open bidding for Binani Cement. Its contention has been that the UltraTech bid was illegal as it goes against the provisions of Insolvency and Bankruptcy Code.

Dalmia Bharat may have taken a hit at the different courts recently, but it is not out of the picture.

According to Rajputana, UltraTech and Binani Industries are acting in concert, a view which is being substantiated by their previous partnership which sought to take over Binani Cements outside the IBC purview. The Dalmia Bharat-owned Rajputana Properties had filed a case against an National Company Law Appellate Tribunal (NCLAT) order that had considered a revised bid from UltraTech. In February, UltraTech and a consortium of Dalmia Bharat and Bain-Piramal's India Resurgence Fund had separately bid for the company.

Arguing that the company emerged as the highest bidder in a process that took place under the established legal framework, Dalmia Bharat's lawyer insisted that UltraTech's offer was an "unholy alliance between a failed bidder and a former promoter".

UltraTech was not declared the victor in view of the penalty imposed by the Competition Commission of India (CCI) for alleged cartelisation with 10 other cement manufacturers. The tribunal had also asked the lenders a revised bid from Dalmia if the company wished to offer.

The apex court last month had rejected the demand for an out-of-court settlement between the promoters of Binani Industries and UltraTech.

A scheduled meeting of Binani Cement's lenders for Thursday has been postponed after Dalmia Bharat alleged that UltraTech is ineligible from participating in the auction.

UltraTech had also provided BIL a letter of comfort for paying Rs. 7,266 crore for the stake sale that BIL would have used to pay off lenders if Binani Cement would have come out of the IBC. The two companies have been in a deadlock for the takeover of Binani Cement ever since.

Meanwhile, the Committee of Creditors who were supposed to meet here to consider the revised higher bid offered by UltraTech has been put off indefinitely, said sources. This was approved in NCLT's abovementioned May 2 order.

In the latest twist to Binani Cement Ltd's takeover proceedings, the Kolkata.

As things stand today, there is no stay on the NCLT order which asked the creditors to consider the revised bids.



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