The Supreme Court on Monday dismissed Dalmia Bharat’s plea challenging the National Company Law Appellate Tribunal’s (NCLAT) order allowing UltraTech Cement to acquire the bankrupt Binani Cement, bringing to an end to the long drawn-out legal battle.
UltraTech said in a release to stock exchanges: “The Supreme Court has today (Monday) dismissed Rajputana Properties’ appeal against the NCLAT order. A certified copy of the order is awaited.” Rajputana Properties is a group company of Dalmia Bharat. A bench of justices RF Nariman and Navin Sinha upheld the NCLAT’s order, which had allowed the Aditya Birla group firm to acquire Binani Cement by approving its revised `7,950.34-crore bid. The judges noted there was no infirmity in the appellate tribunal’s order.
On May 28, the committee of creditors (CoC) voted overwhelmingly in favour of UltraTech’s bid, which was challenged by Rajputana Properties, which took the case to the apex court and NCLAT.
The NCLAT order in the case of Binani Cement had rejected RPPL’s bid as it was discriminatory against some financial creditors. The appellate tribunal had said the RPPL’s resolution plan discriminated between some of the financial creditors who are equally situated and not balanced the other stakeholder, such as operational creditors. “Therefore the adjudicating authority (NCLT Kolkata bench) has rightly held the resolution plan submitted by RRPL to be discriminatory,” it noted. The NCLAT observed both – RPPL and UltraTech — had submitted their plan on February 12, 2018 and subsequently RPPL had revised its plan on March 7 and UltraTech on March 8, much before the CoC voting date of March 14.