NCLT concludes Binani hearings, reserves order
The Division Bench of the National Company Law Tribunal, Kolkata, concluded hearing the petitions with respect to the liquidation proceedings against Binani Cement on Tuesday. The NCLT reserved its order in the corporate insolvency resolution process. Last week, the tribunal had passed an interim order asking the resolution professional to continue to take care of the company.
The 270-day moratorium period for Binani Cement Ltd. ended on April 21. Bank of Baroda (one of BCL’s lenders) has invoked the provisions of the Insolvency and Bankruptcy Code (IBC) proceedings against the company.
As per the IBC, a resolution plan has to be approved by the NCLT within the stipulated moratorium period, failing which the company goes into liquidation. However, the tribunal has discretionary powers to extend the time frame or not consider the time taken for litigation within the stipulated period.
As per the Resolution Professional, the total admitted amount outstanding against BCL including corporate guarantees was ₹7,289 crore. Dalmia Bharat Cement and Ultratech are locked in a legal battle to take over the assets of the company, which included captive limestone mines, a 11.5 million-tonne capacity and units in Dubai and China.
