The Kolkata bench of National Company Law Tribunal (NCLT) has ordered commencement of corporate insolvency resolution process against the Eastern Coalfields (ECL), a subsidiary of the Coal India, for non-payment of interest. The order came after the NCLT admitted an insolvency petition filed by Hinduja Group-controlled Gulf Oil Lubricants India (GOLIL). Although the ECL had paid the principal sum of around Rs 84.71 lakh to GOLIL, one of its operational creditors, it allegedly declined to pay the interest amount at the rate of 18 per cent per annum.
The amount in question is about Rs 40 lakh. “The application filed by the operational creditor… is hereby admitted for initiating the Corporate Insolvency Resolution Process in respect of Eastern Coalfields. Moratorium order is passed for a public announcement….,” Justice Madan B Gosavi said in his December 19 order.
“Considering the facts and materials on record, I hold that the corporate debtor, Eastern Coalfields, is liable to pay interest to the operational creditor, that has not been paid in spite of demand,” the judge observed. The matter is listed on February 4, 2019 for filing of the progress report by Resolution Professional. ECL officials did not respond to repeated calls for their reaction.
Source: Financial Express, December 21,2018