# In the matter of Binani Cement Limited C.P.(IB) No. 359-KB-2017

> NCLT judgment dated 2018-05-02. Citation: TCN-2018-NCLT-01466. The case involves multiple applications filed in the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 2 May 2018
- **Citation:** TCN-2018-NCLT-01466
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/binani-cement-limited-cpib-no-359-kb-2017-20c6c7a1

## Summary

### Background

The case involves multiple applications filed in the Corporate Insolvency Resolution Process (CIRP) of Binani Cement Limited. These applications challenge the resolution process, alleging mismanagement by the Resolution Professional (RP), irregularities in the Committee of Creditors (CoC) constitution, and concerns regarding the valuation of assets. Ultratech Cement Limited, a resolution applicant, filed applications challenging the non-consideration of its revised offer. The director of the corporate debtor also raised objections regarding the RP's conduct and the expenses incurred during the CIRP. Operational creditors also filed applications alleging that their claims were not properly considered.

## Facts

Binani Cement Limited underwent Corporate Insolvency Resolution Process (CIRP) initiated by Bank of Baroda. Several applications were filed challenging the CIRP, alleging mismanagement by the Resolution Professional (RP), irregularities in the Committee of Creditors (CoC), and concerns about asset valuation. Braj Bhushan Das Binani, a promoter director, filed applications challenging the resolution process. Ultratech Cement Limited, a resolution applicant, filed applications contesting the non-consideration of its revised offer. The RP was accused of delegating work, appointing advisors at exorbitant fees, and outsourcing work to a firm where he was a partner. Operational creditors alleged their claims were not properly considered. The CoC approved a resolution plan by

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## Issues and analysis

### Issue 1: Whether the resolution professional exceeded his power in appointing professionals and outsourcing …

**Ratio:** An insolvency professional must provide services for remuneration charged in a

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**Reasoning:** The court found that the RP appointed about 22 representatives, outsourced work to a firm

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**Interpretation:** The court interpreted the regulations to mean that the RP must act

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**Application:** The court applied this principle to the facts, finding that the RP's actions

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## Parties

- **Judges:** Jinan…; Madan B.…
- **Appellants:** Braj Bhusandas…
- **Respondents:** Binani Cement…; Vijaykumar…

## Timeline

- **2017-10-13 — Public Annou…**: Resolution Professional issued public announcements in the Economic Times inviting…
- **2017-07-25 — Appointment of Interim…**: Mr. Vijaykumar V. Iyer appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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