Citation:

Dr. Rajeev Kumar Singh, Sakshi Singh, 2026. "IBC- Binani Cement Case of CIRP", ESP Journal of Engineering & Technology Advancements  6(2): 8-12.

Abstract:

The Corporate Insolvency Resolution Process (CIRP) of Binani Cement Limited (BCL) essentially is a pioneer case of the Indian insolvency law under the Insolvency and Bankruptcy Code, 2016 (IBC). It was launched in July 2017 and finished in November 2018. The case actually highlighted how tricky the balancing between the interest of creditors and maximising the value of a company can be. High operating costs, overseas debt, sector slowdown and an enormous US 250m of guarantee crystallised into financial distress at BCL. Big players came out to bid in the resolution and the initial preferential choice was Dalmia Bharat. But UltraTech Cement came in, and offered a higher bid and repayment to the creditors.

References:

[1] Acuity Law, Developments in Insolvency Laws in November 2018 (2018).

[2] ArcelorMittal India Pvt. Ltd. v. Satish Kumar Gupta, (2018) 13 SCC 1 (India).

[3] AZB & Partners, SC Upholds UltraTech’s Bid for Binani Cement (Dec. 31, 2018).[4] Binani Indus. Ltd. v. Bank of Baroda, Company Appeal (AT) (Insolvency) No. 82 of 2018 (NCLAT Nov. 14, 2018).[5] Chambers and Partners, Cementing Debt Cracks through IBC: Binani Cement (Jan. 29, 2019).

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[5] Chambers and Partners, Cementing Debt Cracks through IBC: Binani Cement (Jan. 29, 2019).

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[14] Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, Gazette of India.<[14] Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, Gazette of India./p>

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[21] Ministry of Corporate Affairs, Annual Report on the Implementation of IBC 2016 (2020).[22] Nishith Desai Assocs., Binani Cement Insolvency Case: Legal Lessons for CIRP (2019).

[22] Nishith Desai Assocs., Binani Cement Insolvency Case: Legal Lessons for CIRP (2019).

[23] PWC India, Cementing Change: IBC and the Binani Precedent (2019).

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[28] Shreya Sinha, Binani Cement and the Evolution of CIRP Jurisprudence, 31 Nat’l L. Sch. India Rev. (2019).[29] Shivangi Aggarwal, Corporate Insolvency and the “Fitter Bidder,” IndiaCorpLaw Blog (Nov. 29, 2018).[30] The Economic Times, NCLAT Allows UltraTech Cement’s Bid for Binani (Nov. 2018).

[29] Shivangi Aggarwal, Corporate Insolvency and the “Fitter Bidder,” IndiaCorpLaw Blog (Nov. 29, 2018).[30] The Economic Times, NCLAT Allows UltraTech Cement’s Bid for Binani (Nov. 2018).

[30] The Economic Times, NCLAT Allows UltraTech Cement’s Bid for Binani (Nov. 2018).

[31] The Hindu Business Line, Binani Cement Insolvency: Lessons for CoC Decisions (2019).

[32] The Leap Blog (Anand & Mehta), Value Destruction and Wealth Transfer under IBC (Dec. 31, 2018).

[33] Vidhi Centre for Legal Policy, IBC: Assessing the Impact of Key Cases (2020).

[34] A. K. Pandey, Corporate Insolvency in India: A Case Study of Binani Cement, 45 Company L.J. 122 (2019).

[35] Ananya Singh, SC Upholds IBC but the Battle Between Financial and Operational Creditors Rages On, iPleaders (Feb. 15, 2019).

Keywords:

: Insolvency and Bankruptcy Code (IBC), Corporate Insolvency Resolution Process (CIRP), Binani Cement Case, Committee of Creditors (CoC), Value Maximization, Creditor Equality, Resolution Plan