Mazagaon Dock Set To File Closure Suit Against Nepc

A spat has erupted between the public sector undertaking Mazagaon Dock (MDL) and NEPC-Micon, the flagship company of the Khemkas, over a payment of Rs 2.75 crore.

G M Rajan, chief manager, MDL, said: "The Khemkas owe us about Rs 2.75 crore for 40 windmill towers. We had sent a legal notice on November 20 threatening to file a winding up petition if they did not clear our dues within three weeks. They have not responded to this so far. The winding up petition will be filed in the Madras High Court in about a week."

The delivery of twenty of these towers costing Rs 1.65 crore were to be taken in 1995-96. NEPC, however, reportedly paid only Rs 75 lakh for the lot. The company then placed orders for another 20 towers costing 1.84 crore but did not take delivery, Rajan said.

The towers have been lying with MDL since March, 1996.

The contract between the two stipulated that the payment will have to be made 15 days after the receipt of the towers.

The Khemkas, however, have a different story to tell. In a faxed reply to Business Standard, they claim that there is no outstanding to Mazagaon Docks in their books.

"The amount claimed by them (MDL) is for the raw material lying with them whereas the order for the towers was cancelled in the month of February 1996 itself. The tower(s) supplied by them are defective and they are not rectifying the defects pointed out to them by us." NEPC-Micon also does not seem to be perturbed about the legal action being contemplated by MDL.

"Further, the towers manufactured by them are without any order and as such, there is no question of the winding up petition being admitted because the matter is not regarding the outstanding, " they said.

To this, Rajan replied: "We will see in court."

The winding up petition is being filed in the Madras High Court as the registered office of NEPC-Micon falls within its jurisdiction.

Rajan was, however, tight-lipped when asked why MDL was filing a winding up petition and not a writ for mere recovery of dues.

NEPC-Micon is in the business of generating wind power while Mazagon Dock is primarily a ship construction yard for the Indian armed forces. It also undertakes construction of windmills.