NCLAT stays insolvency proceedings against Eastern Coalfields Ltd

National Company Law Appellate Tribunal (NCLAT) on Saturday stayed the commencement of corporate insolvency proceedings against Eastern Coalfields Ltd (ECL), a subsidiary of Coal India.

Incidentally, the Kolkata Bench of the NCLAT had on Wednesday admitted the insolvency petition, filed by Gulf Oil Lubricants India Ltd (GOLIL) against ECL, for initiation of insolvency proceedings against the miner as it refused to pay the interest amount at the rate of 18 per cent per annum on the original debt to the operational creditor.

Coal India's subsidiary had already paid the principal sum of around Rs. 84.71 lakh to the creditor.

Challenging the city bench order, Coal India moved the NCLAT.

Appearing before the appellate tribunal, its counsel said that the principal amount had already been paid and as per the terms of agreement or contract, "no interest is payable".

"Until further orders, the operation of the impugned order dated December 19, 2018 by NCLT Kolkata Bench, shall remain stayed," the NCLAT order said.

The NCLAT asked the operational creditor to file its reply by December 26 and listed the matter for January 29, 2019.

--IANS

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