OCL Iron and Steel Ltd., undergoing corporate insolvency resolution process (CIRP), was disqualified from participating in coal mine auctions by the Nominated Authority of the Ministry of Coal due to outstanding dues. The debarment was based on unsettled dues attributable to the Petitioner's erstwhile management. The Petitioner challenged this decision, arguing that the corporate debtor, having undergone CIRP, should not be held liable for past dues addressed in the resolution plan. The Respondent maintained that their claims survived the insolvency proceedings.
OCL Iron and Steel Ltd. was established in 2006 as a coal-based direct reduced iron production unit in Orissa. On March 2, 2015, they executed a Coal Mine Development and Production Agreement with the Union of India for the Ardhagram coal mine, requiring a bank guarantee of Rs. 92,25,20,000. The bank guarantee (PBG) lapsed on March 20, 2021, and was not renewed. A show cause notice was issued on February 26, 2021, for deviations from scheduled production. The allocation of the Ardhagram coal mine was terminated on December 31, 2021. CIRP was initiated against OCL Iron and Steel Limited on September 20, 2021, by Indian Bank. The Respondent (Union of India) submitted claims during the CIRP, including the PBG amount and incremental fixed costs. The Resolution Professional
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OCL Iron and Steel Ltd. was established as a…
OCL Iron and Steel Ltd. executed a Coal Mine…
OCL Iron and Steel Ltd., undergoing corporate insolvency resolution process (CIRP), was disqualified from participating in coal mine auctions by the Nominated Authority of the Ministry of Coal due to outstanding dues. The debarment was based on unsettled dues attributable to the Petitioner's erstwhile management. The Petitioner challenged this decision, arguing that the corporate debtor, having undergone CIRP, should not be held liable for past dues addressed in the resolution plan. The Respondent maintained that their claims survived the insolvency proceedings.
OCL Iron and Steel Ltd. was established in 2006 as a coal-based direct reduced iron production unit in Orissa. On March 2, 2015, they executed a Coal Mine Development and Production Agreement with the Union of India for the Ardhagram coal mine, requiring a bank guarantee of Rs. 92,25,20,000. The bank guarantee (PBG) lapsed on March 20, 2021, and was not renewed. A show cause notice was issued on February 26, 2021, for deviations from scheduled production. The allocation of the Ardhagram coal mine was terminated on December 31, 2021. CIRP was initiated against OCL Iron and Steel Limited on September 20, 2021, by Indian Bank. The Respondent (Union of India) submitted claims during the CIRP, including the PBG amount and incremental fixed costs. The Resolution Professional
…OCL Iron and Steel Ltd. was established as a…
OCL Iron and Steel Ltd. executed a Coal Mine…