The National Company Law Appellate Tribunal (NCLAT) on Saturday ordered a stay on the commencement of corporate insolvency proceedings against Eastern Coalfields Ltd (ECL), a subsidiary of Coal India.
It may be noted that the Kolkata bench of National Company Law Tribunal had, on Wednesday, admitted the insolvency petition, filed by Gulf Oil Lubricants India Ltd (GOLIL), for initiation of insolvency proceedings against ECL. The insolvency proceedings was initiated as the company refused to pay the interest amount at the rate of 18 per cent per annum on the original debt of around ₹85 lakh to the operational creditor.
ECL had already paid the principal sum of around ₹85 lakh to Gulf Oil Lubricants.
Challenging the order passed by Kolkata bench of NCLT, Coal India had moved to 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 passed in CP (IB) No.228/KB/2018 by NCLT Kolkata Bench, shall remain stayed. The Resolution Professional, if joined may report,” the NCLAT order said.
NCLAT asked the operational creditor, to file its reply by December 26 and listed the matter on January 29, 2019.
During 2017-18, ECL clocked net sales of around ₹10,626 crore, and posted net loss of around ₹931 crore.