NCLT Kolkata Bench yesterday admitted an application filed by Bank of Baroda against Binani Cements Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016..The bench on Tuesday ordered the appointment of Vijaykumar Iyer, Partner at Deloitte Touche Tohmatsu India LLP, as interim resolution professional for Binani Cement..Binani Cements owes a sum of Rs. 97 crore to Bank of Baroda..Rishav Banerjee, counsel appearing on behalf of Bank of Baroda submitted that a Corporate Debt Restructuring had already taken place and consequently a Master Restructuring Agreement was entered into sometime in December, 2014..Bank of Baroda’s application further stated that the company had committed to its lenders in January this year that it would come up with a turnaround plan. The lenders met the company management again in April, but it has still not been able to firm up a restructuring plan, Banerjee told the bench..Lead counsel, Pratap Chatterjee appearing on behalf of Binani sought to oppose the application on technical grounds. He submitted that there is no specific authorization to initiate the insolvency proceedings since Bank of Baroda was not the lead lender to the cement maker and that it had not taken the approval of the Joint Lenders Forum before moving NCLT..In response, Banerjee cited the judgment of the NCLAT in Innoventive Industries Case and submitted that in light of Section 7 of IBC and in light of the Judgment of NCLAT, Bank of Baroda can independently move the application and consent of the Joint Lenders Forum is not required..Binani’s counsel Chatterjee further argued that the company has once again given a fresh proposal to the lenders and Bank of Baroda alone cannot move an application under IBC. However, at the time of hearing, Ratnanko Banerjee, Senior Counsel appearing on behalf of the Joint Lenders Forum informed the bench that all such proposal given by the Debtor has failed..The bench ruled on Tuesday,.“on the basis of documents filed by the financial creditor (Bank of Baroda) that (the) corporate debtor (Binani Cement) has committed default in making payment of Rs97.7 crore and therefore… the application for initiating corporate insolvency resolution process deserves to be admitted.”.Read NCLT Order
NCLT Kolkata Bench yesterday admitted an application filed by Bank of Baroda against Binani Cements Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016..The bench on Tuesday ordered the appointment of Vijaykumar Iyer, Partner at Deloitte Touche Tohmatsu India LLP, as interim resolution professional for Binani Cement..Binani Cements owes a sum of Rs. 97 crore to Bank of Baroda..Rishav Banerjee, counsel appearing on behalf of Bank of Baroda submitted that a Corporate Debt Restructuring had already taken place and consequently a Master Restructuring Agreement was entered into sometime in December, 2014..Bank of Baroda’s application further stated that the company had committed to its lenders in January this year that it would come up with a turnaround plan. The lenders met the company management again in April, but it has still not been able to firm up a restructuring plan, Banerjee told the bench..Lead counsel, Pratap Chatterjee appearing on behalf of Binani sought to oppose the application on technical grounds. He submitted that there is no specific authorization to initiate the insolvency proceedings since Bank of Baroda was not the lead lender to the cement maker and that it had not taken the approval of the Joint Lenders Forum before moving NCLT..In response, Banerjee cited the judgment of the NCLAT in Innoventive Industries Case and submitted that in light of Section 7 of IBC and in light of the Judgment of NCLAT, Bank of Baroda can independently move the application and consent of the Joint Lenders Forum is not required..Binani’s counsel Chatterjee further argued that the company has once again given a fresh proposal to the lenders and Bank of Baroda alone cannot move an application under IBC. However, at the time of hearing, Ratnanko Banerjee, Senior Counsel appearing on behalf of the Joint Lenders Forum informed the bench that all such proposal given by the Debtor has failed..The bench ruled on Tuesday,.“on the basis of documents filed by the financial creditor (Bank of Baroda) that (the) corporate debtor (Binani Cement) has committed default in making payment of Rs97.7 crore and therefore… the application for initiating corporate insolvency resolution process deserves to be admitted.”.Read NCLT Order
