The Kolkata bench of National Company Law Tribunal (NCLT) will hear the arguments for the second day between Exim Bank and Binani Industries in the Binani Cement case.

Yesterday, state-owned Exim Bank has submitted an application to the Kolkata bench of NCLT objecting to the resolution plan of Dalmia Bharat Cement.

Earlier, the Supreme Court has refused to allow the company’s out-of-court settlement.

Meanwhile, Binani Operational Creditors Forum (BOCF) said it has sought a forensic audit of the insolvency resolution process of Binani Cement due to an alleged lack of transparency and step motherly treatment to Micro, Small & Medium Enterprises (MSME) players.

The forum has filed a petition in the Supreme Court calling for a forensic audit of the process. The petition will come up for hearing next on April 19.

Debt-ridden Binani Cement owes about Rs 7,000 crore to financial and operational creditors.

Binani Industries, the parent company of Binani Cement, had earlier offered to pay off 100 per cent of its dues to creditors, including operational creditors, and had pleaded for termination of insolvency proceedings at the Kolkata Bench of NCLT.

On March 19, Binani Industries had entered into an in-principle understanding with UltraTech Cement, which agreed to acquire 98.43 per cent stake in the cement unit for Rs 7,266 crore ‘subject to termination’ of insolvency proceedings

The offer by Dalmia Bharat consortium is Rs 6,350 crore.

Arguments were heard from both the sides yesterday.

- There is a revised offer on table where UltraTech has increased its offer to about Rs 8,000 crore.

- National Company Law Appellate Tribunal (NCLAT) hearing will be on April 19th and it is likely that the creditors or even Binani Industries could argue for a second round of rebidding for Binani Cement.

First Published:Apr 17, 2018 11:47 AM IST