KEY HIGHLIGHTS
I. NCLT allows consideration of revised offer by UltraTech Cement Limited upholding the objective of the IBC in the insolvency resolution of Binani Cement Limited
The Kolkata Bench of the National Company Law Tribunal ("NCLT") in the case of Bank of Baroda v. Binani Cement Limited (decided on May 2, 2018) directed the Resolution Professional ("RP") and the Committee of Creditors ("CoC") to consider the revised offer made by UltraTech Cement Limited ("UTCL"). Further, the NCLT directed the RP to allow the suspended board of directors and the operational creditors to attend the meeting of the CoC in compliance with Section 24(3) of the Insolvency and Bankruptcy Code, 2016 ("IBC").
Facts
In the matter of corporate insolvency resolution process ("CIRP") of Binani Cement Limited ("Corporate Debtor"), various applications were filed by the promoter director, the unsecured financial creditors and the operational creditors of the Corporate Debtor and UTCL. The brief facts leading to various applications by the aforesaid persons and entities are as follows: The RP appointed various advisors and outsourced most of work thereby incurring exemplary costs. Rajputana Properties Private Limited ("RPPL") was declared as the H1 bidder by the CoC. However, the RP had not completed the process of verification of claims of the operational creditors. The resolution plan of RPPL provided for discriminatory treatment inter se the creditors of the Corporate Debtor. UTCL, one of the resolution applicants, submitted a revised offer, higher than that offered by RPPL, in consonance with the object of maximisation of value of assets. However, the same was not considered by the RP and the CoC as it was submitted after the last date for submission of the bid.
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