Kolkata, Dec 21 (IANS) National Company Law Tribunal's (NCLT) Kolkata bench has directed initiation of corporate insolvency resolution process against Coal India's subsidiary Eastern Coalfields Ltd (ECL).
The tribunal has admitted the insolvency petition, filed by Gulf Oil Lubricants India Ltd (GOLIL), against the miner under Section 9 of the Insolvency & Bankruptcy Code (IBC) 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.
ECL had already paid the principal sum of around Rs 84.71 lakh to the creditor.
"The application filed by the operation creditor under Section 9 of the Insolvency & Bankruptcy Code, 2016 is hereby admitted for initiating the Corporate Insolvency Resolution Process in respect of Eastern Coalfields Ltd," said the order which was pronounced on December 19.
Passing the order, Justice Madan B. Gosavi observed that "considering the facts and materials on record, I hold that the corporate debtor, Eastern Coalfields Ltd is liable to pay interest to the operational creditor, that has not been paid in spite of demand".
The tribunal appointed Chhedi Rajbhar of C. Rajbhar & Co. as the Interim Resolution Professional (IRP) for ascertaining the particulars of creditors and convening a Committee of Creditors (CoC) for evolving a resolution plan for the public sector miner.
During the last financial year, the miner had clocked a gross sales turnover of Rs 15,250.11 crore, while its total comprehensive loss was at Rs 824.17 crore.
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