NCLT admits insolvency petition against Eastern Coalfields for non-payment of interest

Kolkata: The Kolkata bench of National Company Law Tribunal (NCLT) has ordered the commencement of corporate insolvency resolution process against the Eastern Coalfields (ECL), a subsidiary of the Coal India, for non-payment of interest. The order came after the NCLT admitted an insolvency petition filed by Hinduja Group-controlled Gulf Oil Lubricants India (GOLIL). [caption id="attachment_4407987" align="alignleft" width="380"]

Representational image. News18.[/caption]Although the ECL had paid the principal sum of around Rs 84.71 lakh 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 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 19 December 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 4 February, 2019 for the filing of the progress report by Resolution Professional. ECL officials did not respond to repeated calls for their reaction.