In a set back to the proposed out-of-court settlement between Binani Industries and UltraTech Cement, the Supreme Court on Friday refused to terminate Insolvency and Bankruptcy Code proceedings against the former.
Binani Industries had received a "comfort letter" from UltraTech, which enabled it to repay the lenders of its subsidiary Binani Cements. In return, UltraTech could acquire 98.43 percent stake in Binani Cements.
But Dalmia Bharat, which was declared the preferred bidder during the auction, had contested the move.
After Friday's development, Binani Industries has said that it has withdrawn its appeal to the Supreme Court and will go back to the Kolkata bench of the National Company Law Tribunal (NCLT). The bench has a hearing on Monday, April 16.
"Binani before the Supreme Court has withdrawn its appeal challenging the interim order dated April 5, 2018, passed by NCLAT, for the reason that challenge to the resolution plan is pending adjudication before the NCLT Kolkata," a source close to Binani Industries told Moneycontrol.
Since the appeal was withdrawn before the Supreme Court, the court did not make any observations. Now, NCLT Kolkata will decide on all the pending applications filed by various parties, in accordance with the provisions of the IBC and the law of the land.
Binani Industries may now wait for the NCLT to make a decision, before approaching the Supreme Court again.
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