NCLT Approves Dalmia Cement's Plan To Revive Murli Industries

Murli Industries operations came to a stand-still during FY 15-16

- Pritam Sangwan

Alter a long-drawn case, the National Company Law Tribunal [NCLT] Mumbai has given approval to Dalmia Cement [Bharat] regarding the resolution plan for the revival of Murli Industries.

Dalmia Cement (Bharat) Ltd is one of the prominent players in the cement manufacturing industry and is a wholly-owned subsidiary of the Dalmia Bharat Ltd who is listed on the stock exchange having a market cap of Rs 18,738 crore [approx.)

Murli Industries Ltd. has an integrated cement manufacturing plant with an installed capacity of 3MT in Chandrapur district, Maharashtra along with the captive thermal power plant of 50mw. In addition, Murli Industries also has paper and solvent extraction units in Maharashtra. The operations of the Murli Industries (Corporate Debtor) came to stand still during FY2015-16.

IBC Process against Murli Industries Ltd

Section 7 application filed by one of the financial creditor Edelweiss Asset Reconstruction Company Limited [EARC) was admitted by NCL T and Corporate Insolvency Resolution Process (CIRP) was started against Murli Industries. Resolution plan as submitted by Dalmia Cement is approved by the Committee of Creditors (CoC) with 100% voting shares and creditors are getting Rs 402 crore for their claim of Rs 3,171.26 crore. NCL T approved the plan with a couple of modifications in the resolution plan. The various issues and observations made by NCL T in the resolution plan are covered in this article.

Various hurdles in Resolution plan approval

A couple of applications filed with Adjudication authority [NCL T) for rejecting the resolution plan. Major concerns of the applicant were noted below along with comment From NCLT on the same.

Suggestion to Government by NCL T member