While the Supreme Court
did not stay the process, it listed the case to be heard on a daily basis in the NCLAT, where Dalmia Bharat
had previously filed another petition of a similar stature. The NCLAT had listed the case on July 10 after which it will be heard on a daily basis.
Legal sources among the contending parties for the takeover of Binani Cement
stated that before the case is heard on a daily basis in the NCLAT, which will take a call on UltraTech’s proposal, the NCLT needs to dispose of the case placed before it. “Thus, in all likelihood, the NCLT is poised to pass its verdict on the Binani Cement
takeover case not later than July 10,” a source said.
On the other hand, the Supreme Court
on Monday clearly stated that even though the CoC is at liberty to go ahead with the resolution process of Binani Cement, the country’s apex court will take the final call in this regard.
Following implications of the Supreme Court
order, sources close to Dalmia Bharat
said that the CoC may proceed with the insolvency process but it cannot take a final call on this matter before the NCLAT had thoroughly heard the case.
On the other hand, sources opposing the takeover of Binani Cement
by Dalmia Bharat
stated that it implies that the NCLT can decide on the matter but “it cannot be implemented unless the Supreme Court
gives a nod to its decision”.
“The Supreme Court
is now taking interest in this case and from Monday’s proceedings it is clear that the final call rests with the Supreme Court,” a legal source with Dalmia Bharat
As such, legal sources representing UltraTech
in the NCLT said that the company may have to undergo a three-stage approval process — from NCLT, NCLAT and the Supreme Court
— before acquiring assets of Binani Cement.
On Monday, after the resolution professional of Binani Cement
submitted UltraTech’s plan to NCLT for approval, Rajputana Properties — the Dalmia Bharat-led consortium, raised objections primarily over UltraTech’s ineligibility under Section 29(A) of the IBC to offer any resolution plan. The bench, in turn, directed this company to file its objections in an affidavit in the next seven days.
However, the NCLT rejected Dalmia Bharat’s plea to vet the offer from UltraTech
Marred by a fresh series of litigations after as many as 14 were disposed of last month, the Binani Cement
takeover case is up for hearing on June 18 in the NCLT, July 2 in the Supreme Court
and July 10 in the NCLAT.
Progress so far
Supreme Court finally clears its intention to pass the final verdict in the Binani Cement case
The NCLT expected to pass final decision on UltraTech’s plan by July 10
Hearing in the NCLAT to proceed on a daily basis from July 10
Dalmia Bharat to submit its objections to UltraTech’s plan in the NCLT within seven days