New Delhi: The Appellate Tribunal NCLAT has rejected the plea against the acquisition of Vadraj Cement by Nirma Group Cement Business Nuvoco Vistas Corporation during an insolvency oil process.
The NCRAT main bank based in Delhi has confirmed the previous order adopted by the Mumbai Bench of the National Company Law Tribunal (NCLT), which on April 1, 2025 approved the Nuvoco Vistas plan for Vadraj Cement, which includes an upfront payment from RS 1,800 Crore.
A two-part NCLAT-Bank consisting of chairman Justice Ashok Bhushan and member (technical) Barun Mitra rejected a profession that was submitted by an employee and authorized representative of employees of Vadraj Cement against the approval of the bid of the Nuvoco Fished about their reimbursement of their Grotituisey dues.
The Gujarat-based Vadraj Cement, formerly owned by ABG Shipyard, with a vowel unit of 3.5 MTPA (million tonnes per year) in Kutch and a 6 mmtpa sharpening unit in Surat, together with Cactive Jetty in Kussch, the total debt was more than RS 8,000 Crore, according to strappeds.
In addition, the National Company Law Appellate Tribunal (NCLAT) is about the observed valuation: “The average liquidation value is RS 1,080 crore and real value RS 1.668 Crore, the plan value submitted by resolution applicant (Nuvoco Vistas) is more than real value of the CD (Vadra Cement).”
Nuvoco Vistas, who has taken over Vadraj, through her subsidiary Vanya Corporation, was approved by the Committee of Creditors (COC) with a majority of 100 percent.
Earlier on June 21, Nuvoco Vistas Corporation said that Vanya Corporation completed the acquisition of Vadraj, in accordance with the conditions of the resolution plan approved by the NCLT.
The resolution plan provided payment to the operational creditors, including the employees of the CD.
They had a claim of RS 10.51 Crore in the direction of provided for-provisionable funds, pension fund and tip funds, in which RS 6.30 Crore was provided and the balance had to be paid that had to be paid on a pro-rata-based in accordance with the resolution plan.
Nclat observed that the resolution applicant, Nuvoco Vistas and the RP have also argued that according to the value of the resolution plan and the payment to the secure financial creditors (SFC), the liquidation value of the employees is NIL and the planning ends despite the liquidation value are zero.
“We believe that there is no inconsistency or illegality in the disputed order of 01.04.2025 to approve the resolution plan. The payment to the employees is according to the approved resolution plan. We find no substance in submitting the appellant appellant (NCLAT)
They noted that the total amount of the tip contribution is only RS 2.86 crore and that is well presented for employees within the payment.
In addition, the resolution professional has the proposed balance that must be paid on pro-rata, in accordance with the resolution plan.
“We find no inconsistency or contradiction in the resolution plan as claimed by the appellant,” said NCLAT.
Corporate Insolvency Resolution Process (CIRP) against Vadraj, started from 2 February 2024 after the NCLT had admitted a plea that had been submitted by the then Oriental Bank of Commerce (now Punjab National Bank) under section 7 of the Insolvency & Baillissement Code.
Nuvoco is positioned as the fifth largest cement maker in India. The Nirma Group company had started its activities in 2014 via a Greenfield -Cement Factory in Nimbol, Rajasthan. Later it acquired Lafarge India, which entered India in 1999 and Emami Cement in 2020.
With this acquisition, the consolidated capacity of Nuvoco Vistas has reached 31 mmtpa.
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