The NCLT bench of Kolkata on Tuesday asked the Committee of Creditors (CoC) whether it could consider the application filed by Binani Industries, the parent company of stressed Binani Cement, for a settlement outside the tribunal.
The NCLT judge contended that in the larger interest of the creditors, the CoC could give it a consideration.
The matter is fixed again for hearing on April 2.
The counsel appearing on behalf of the shareholders of Binani Industries, controlling 98 per cent stake, told the bench that the company had now found the means to pay its creditors, mostly banks, within a span of two weeks.
Objecting to this, counsels appearing on behalf of CoC said that Binani Industries was a third party, and not associated with the resolution process.
The CoC counsels contended whether the ongoing resolution process once admitted could be halted, and if the same can be allowed under the Insolvency and Bankruptcy Code (IBC).
To this, Binani Industries said that NCLT did have the inherent powers to consider its application, the logic of which was rejected by the counsel appearing on behalf of Dalmia Bharat Cement.
According to Dalmia Bharat’s advocate, such a move by the owners of the stressed company was “frivolous as they were not a part of the process”.
The NCLT judge, however, differed with the contention of Dalmia Bharat, saying that shareholders with 98 per cent stake were not outsiders.
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 aroud Rs 7,000 crore to its creditors.
Source: Press Ttust of India