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Dalmia Bharat prepares its battle-plan for Friday as Binani Cement moves SC

Sources suggest that the Dalmia Bharat counsel is likely to touch upon these issues on Friday

Avishek Rakshit  |  Kolkata 

Dalmia Bharat, Binani cement, Ultra Tech cement,  National Company Law Tribunal , NCLT,Deloitte ,Murli Cement and Kalyanpur Cement,  JSW Cement,

Dalmia Bharat, which was chosen by the creditors under the Insolvency and Bankruptcy Code (IBC) to take over Binani Cement, is preparing to disrupt the debt-laden company’s promoter Binani Industries’ move to the for an out-of-court settlement with lenders.

has filed a caveat with the so that proceedings do not take place without its knowledge or an ex-partie order is not issued.

Mahendra Singhi, chief executive officer, Dalmia Bharat, said an out-of-court settlement with the lenders would jeopardise India’s global ranking in ease of doing business. He asked: “How can the lenders settle their dues with those against whom allegations of money siphoning are being raised?”

Binani Cement’s resolution professional, Vijay Kumar Iyer, had earlier submitted an application with the Kolkata Bench of the (NCLT), alleging suspected fraudulent activities by

ALSO READ: Dalmia Cement confident of getting nod for Rs 63.5-bn offer for Binani

“It would be indeed sad if, for Rs 3-4 billion extra, the banks accept Binani Industries’ proposal. It would promote people doing unlawful activities to the likes of or Vijay Mallya,” Singhi said. Mallya is a wilful defaulter on account of corporate loan default and the has alleged unauthorised transactions by

Binani cement

Singhi, however, clarified that his allegations were based on the application submitted by Iyer and doesn’t follow any enquiry undertaken by had earlier termed the allegations by the resolution professional an “after-thought” and some of the lenders termed it as “questionable transactions not amounting to fraud”.

On Saturday, after the lenders expressed their willingness to go ahead with an out-of-court settlement if had the approval of the Supreme Court, the company filed a special leave petition under Section 62A of the and submitted a plea for an out-of-court settlement. The will be hearing the submissions on Friday.

ALSO READ: Insolvency proceedings: Binani Cement likely to move SC on UltraTech plan

“The maxim of the insolvency code is maximisation of value for the lenders and, thus, we do not think Binani Industries’ move is against the spirit of the IBC,” one of the lenders in the committee of creditors told Business Standard.

Singhi, however, has said such maxim cannot be implied in isolation. According to Singhi, India’s global rankings in ease of doing business could improve on the back of proper implementation of the IBC, which seeks to solve the problem of spiralling non-performing assets with the banks and offer sick a second chance.

Sources suggest that the counsel is likely to touch upon these issues on Friday.

ALSO READ: Road to insolvency: Binani operational creditors 'aghast' at Dalmia's offer

A source close to said that the lenders have already taken Rs 7.5 billion from the company as earnest deposit, which shows the lenders’ consent to their proposal. “is also a respondent in this case as they are financing the deal,” the source in said.

According to a Binani Industries’ spokesperson, the is not designed to penalise a promoter by preventing them to make a full payment of legitimate dues and “become a mute spectator to his/her company being sold at a huge discount, causing financial loss to financial lenders, trade operational creditors, public equity holders etc”.

ALSO READ: Road to insolvency: Binani promoters sweeten offer to lenders by Rs 2.5 bn

“The preamble of the works on the basic ethos of maximising value for all stakeholders. Keeping this in mind, a borrower always has the right to pay off all dues of all lenders and creditors and redeem the company from all mortgages. Based on this basic principle, the company has appealed to the committee of creditors for a settlement outside the CIRP (Corporate Insolvency Resolution Process),” the spokesperson said.

Backed by UltraTech Cement, has offered the lenders over Rs 76 billion for the out-of-court settlement, which is Rs 1.1 billion higher than what is offering.

First Published: Mon, April 09 2018. 23:08 IST
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