Apex court denies relief to Binani Cement operational creditors

Swiss Ribbons and other firms have alleged several provisions of the Insolvency and Bankruptcy code are invalid

The Supreme Court on Monday declined any relief to operational creditors of Binani Cement, which is undergoing insolvency proceedings in the National Company Law Tribunal (NCLT) in Kolkata. The operational creditors include coal firms, transporters, and suppliers of cement bags. The operational creditors had moved an application before the court while it was hearing petitions challenging the constitutional validity of the Insolvency and Bankruptcy Code. 

Swiss Ribbons and other firms have alleged several provisions of the code are invalid. The court had earlier asked Attorney General K K Venugopal to respond to the petitions. It, however, adjourned the case till May 4. One argument against the Code is that the method of appointment to the NCLT and the National Company Law Appellate Tribunal was against the principles the Supreme Court had laid down.