Charcoal is filtered on a wire mesh at a coal wholesale market in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

NCLT Admits Insolvency Petition Against Eastern Coalfields

The National Company Law Tribunal ordered commencement of corporate insolvency resolution process against the Eastern Coalfields, a subsidiary of the Coal India, for non-payment of interest.

The order came after the tribunal’s Kolkata bench admitted an insolvency petition filed by Hinduja Group-controlled Gulf Oil Lubricants India.

Although the Eastern Coalfields had paid the principal sum of around Rs 84.71 lakh to Gulf Oil Lubricants, one of its operational creditors, it allegedly declined to pay the interest amount at the rate of 18 percent per annum. The amount in question is about Rs 40 lakh.

“The application filed by the operational creditor...is hereby admitted for initiating the corporate insolvency resolution process in respect of Eastern Coalfields. Moratorium order is passed for a public announcement,” Justice Madan B Gosavi said in his Dec. 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.

The matter is listed on Feb. 4, 2019 for filing of the progress report by resolution professional.

Eastern Coalfields officials did not respond to repeated calls for their reaction.