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NCLAT stays corporate insolvency proceeding against Eastern Coalfields Ltd

NCLAT has listed the matter on January 29 for further hearing

Press Trust of India  |  Kolkata 

Coal, Coal India, NCLAT

The on Saturday stayed its Kolkata bench's order for commencement of resolution process against for alleged non-payment of interest.

The Kolkata bench's December 19 verdict came after it admitted an petition filed by Hinduja Group- controlled (GOLIL).

However, the NCLAT on Saturday ruled that "until further orders, the operation of the impugned order dated 19th December, 2018 passed... by Kolkata Bench shall remain stayed..."

NCLAT has listed the matter on January 29 for further hearing.

Although ECL -- a subsidiary of state-owned mining major -- had paid the principal sum of around Rs 8.4. million 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 4 million.

"The application filed by the operational creditor... is hereby admitted for initiating the Corporate Resolution Process in respect of Eastern Coalfields...," Justice Madan B Gosavi had 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.

ECL officials did not respond to repeated calls for comment.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Sat, December 22 2018. 20:10 IST