Creditors' panel may consider Binani's application: NCLT

The National Company Law Tribunal's (NCLT) Kolkata bench on Tuesday said that the committee of creditors (CoC) of insolvent Binani Cement may take up the application filed by its parent company, Binani Industries, for an out of tribunal settlement.

During the hearing, the bench observed that "the CoC could take this up for appropriate consideration at their liberty".

The matter would be heard further on April 2.

The counsel, representing CoC, said the offer was excellent and but it could not be settled, out of the tribunal, under the Insolvency and Bankruptcy Code, when the insolvency proceeding has been started.

According to him, only the Supreme Court has the power to consider it.

However, Binani Industries counsel argued that the bench has the inherent power to consider it.

Meanwhile, Resolution Professional, Vijaykumar V Iyer, has submitted the resolution plan of Dalmia Bharat-controlled Rajputana Properties before the NCLT as the "highest bidder" to take over the debt-laden company.

The counsel appearing for Dalmia Bharat questioned Binani's logic.

Binani Industries had submitted the application before the tribunal seeking termination of insolvency proceedings against its cement manufacturing subsidiary and the company's counsel said it could pay all its creditors within two weeks.

The move came after the company concluded a commercial understanding with Aditya Birla Group firm UltraTech Cement to sell its entire 98.43 per cent stake in its cement manufacturing subsidiary at a consideration of Rs 7,266 crore.

--IANS

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