Binani withdraws its plea in SC for out-of-court settlement
NEWDELHI:Binani Industries Ltd on Friday withdrew its plea seeking permission for an out-ofcourt settlement and an end to insolvency proceedings against its debt-ridden subsidiary, Binani Cement Ltd.
The company said it would now argue the debt settlement plea pending before the Kolkata bench of the National Company Law Tribunal (NCLT).
The plea was withdrawn after a bench comprising justices A.K. Goel and Rohinton F. Nariman said they were not inclined to interfere with the order of the National Company Law Appellate Tribunal (NCLAT).
“Why should we interfere at this stage? UltraTech (Cement Ltd), the second highest bidder seems to have ‘put you up’ to this,” justice Nariman observed.
According to legal experts, withdrawal of insolvency proceedings at an advanced stage could be an attempt to subvert the process. “It is a matter of great satisfaction that the Hon’ble Supreme Court of India has unequivocally upheld the principles of decision-making on resolution plans under the IBC. Demands for out-of-court settlement and attempts to withdraw insolvency proceedings after they have reached an advanced stage, at the instance of the disqualified promoter or a losing bidder, have been seen through as a device and an attempt to do indirectly what could not be done directly, Shardul Shroff, executive chairman of law firm Shardul Amarchand Mangaldas, said.
The NCLAT had directed the adjudicating authority, the NCLT, to proceed with the resolution process of Binani Cement as per the Insolvency and Bankruptcy Code, 2016 (IBC).