# Avil Menezes, Resolution Professional of Topworth Urja & Metals Limited v. Ministry of Coal & Others

> NCLAT judgment dated 2024-10-23. Citation: TCN-2024-NCLAT-00144. The appeal arises from an order dated 06.02.2024 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 23 Oct 2024
- **Citation:** TCN-2024-NCLAT-00144
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/avil-menezes-rp-of-topworth-urja-metals-limited-vs-ministry-of-coal-ors-81eeff5c

## Summary

### Background

The appeal arises from an order dated 06.02.2024 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench-I) in I.A. No. 4460 of 2023 in CP (IB) No. 1807 of 2018. The Appellant had filed the I.A. No. 4460 of 2023 seeking direction against the Secretary, Ministry of Coal-Respondent No.1 and Coal Controller-Respondent No.2 not to withdraw the mine opening permission in respect of Marki Mangli I Coal Block. By the impugned order, the Adjudicating Authority directed the Respondent No. 2 to withdraw the withdrawal letter of mine opening permission and also directed the Appellant to keep aside the Annual Mine Closure Cost besides directing the Appellant personally liable for disposal of the mined coal in accordance with the terms of the Mine

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## Facts

The Ministry of Coal, Government of India, directed the auction of coal mines under Section 41 of the Coal Mines (Special Provisions) Act, 2015. Respondent No. 1 issued a tender document for various coal mines, including Marki Mangli – I Coal Mine. The Corporate Debtor participated in bidding and was declared the Successful Bidder for the MM-I Coal Block. The Corporate Debtor and the President of India entered into a Coal Mine Development and Production Agreement regarding the allocation of the MM-1 Coal Block. A Mining Lease Deed was executed by the District Mining Officer, Govt. of Maharashtra, in respect of the MM-I Coal Block. The Corporate Debtor, State Bank of India, and the Coal Controller's Organisation entered into an Escrow Agreement in respect of the MM-1

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## Issues and analysis

### Issue 1: Whether the withdrawal letter dated 05.09.2023 could have been issued in view of the CIRP …

**Ratio:** The IBC imposes a moratorium under Section 14 upon the commencement of CIRP, which bars

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**Reasoning:** The Adjudicating Authority held that it had jurisdiction to direct the nominated

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**Interpretation:** The issuance of the withdrawal letter after the commencement of CIRP and the

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**Application:** In this case, the withdrawal letter was issued after the CIRP commencement

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## Parties

- **Judges:** Barun M…
- **Appellants:** Avil Me…
- **Respondents:** Topworth Urja &…; Ministry o…
- **Other parties:** 8th Edition…; Annual Mine…; +13 more

## Timeline

- **2015-06-04 — Ministry of Co…**: The Ministry of Coal, Government of India, vide order dated 04.06.2015 under Rule 8(2) of…
- **2015-06-08 — Tender Documen…**: Respondent No. 1 issued a tender document dated 08.06.2015 for various coal mines across…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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