NCLAT allows parties to settle dispute over Binani Cement sale

The National Company Law Appellate Tribunal (NCLAT) today allowed the parties in dispute over selling of debt-ridden Binani Cement to amicably settle the dispute. A two-member bench of the appellate tribunal headed by Justice S J Mukhopadhaya gave liberty to the parties entangled in vexatious litigations, to settle the case amicably. "We give liberty to parties to reach settlement and approach appropriate forum for approval of the settlement," the NCLAT said. The appellate tribunal was hearing a petition filed by Binani Industries, which holds over 90 per cent share in Binani Cement. "Learned counsel for the appellant submit that appellant has offered a better amount that is 100 per cent approximately of the dues to the committee of creditors (CoC)," the court said. As per the IBC code, after a resolution plan is approved by the the CoC, it is forwarded to NCLT for approval. Earlier, on March 27, the Kolkata bench of NCLT had also suggested that the parties go for settlement. While Dalmia Bharat has offered an amount of Rs 6,500 crore for Binani Cement, UltraTech of the Aditya Birla Group, which had entered into a bilateral pact with the promoters of Binani, agreed to pay Rs 700 crore more at Rs 7,200 crore. Binani Cement owes around Rs 7,000 crore to its creditors. The dispute relates to UltraTech Cement's allegations that the process for choosing the top bidder was not transparent and that the resolution professional (RP) had not followed established best practices. Dalmia Bharat was declared the top bidder. UltraTech then moved NCLT and also wrote to Binani Cement's RP, offering to increase its bid price. But when it was not accepted, UltraTech struck a deal with Binani Industries to buy its 98.43% stake in the cement unit, provided the insolvency case was terminated. Binani Industries then approached NCLT asking that the case be terminated.