# In the matter of Orissa Manganese & Minerals Ltd. CA (IB) No. 134-KB-2018 IN CP (IB) No. 371-KB-2017

> NCLT judgment dated 2018-03-16. Citation: TCN-2018-NCLT-01701. The case involves an application filed by the Resolution Professional of Orissa Manganese and…

- **Court:** NCLT
- **Order date:** 16 Mar 2018
- **Citation:** TCN-2018-NCLT-01701
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/orissa-manganese-minerals-ltd-ca-ib-no-134-kb-2018-in-cp-ib-no-371-kb-2017-c8c2dcf1

## Summary

### Background

The case involves an application filed by the Resolution Professional of Orissa Manganese and Minerals Limited (OMM Ltd), the Corporate Debtor, in C.P. (IB) No. 371 of 2017, seeking to lift the order of stoppage of mining work at Patmunda Manganese Mines in Sundargarh, Odisha. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor based on an application by State Bank of India (SBI), the Financial Creditor, which was admitted on 03.08.2017, leading to a moratorium under Section 14 of the Insolvency and Bankruptcy Code (IB Code). The respondents had issued a notice for stoppage of mining operations due to non-payment of compensation, which the Resolution Professional argued was in violation of the moratorium.

## Facts

State Bank of India (SBI) initiated Corporate Insolvency Resolution Process (CIRP) against Orissa Manganese & Minerals Ltd (OMM Ltd) which was admitted on 03.08.2017. Consequently, a moratorium was declared under Section 14 of the Insolvency and Bankruptcy Code (IBC). OMM Ltd is a mining lease holder of Patmunda Manganese Mines, employing around 1000 workers. The Director of Mines, Odisha, issued a notice (Annexure-E) on 01.01.2018, for stoppage of mining operations due to non-payment of compensation. The Resolution Professional (Sumit Binani) approached the respondents to lift the stoppage, but the respondents did not comply. The CIRP period started from 03.08.2017 and was to expire on 28.04.2018. The Resolution Professional then filed an application before the

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## Issues and analysis

### Issue 1: Whether the stoppage of mining operations by the respondents is in violation of the moratorium …

**Ratio:** The moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016, prohibits

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**Reasoning:** The adjudicating authority reasoned that the demand made by the first respondent dated

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**Interpretation:** Section 14 of the IBC imposes a moratorium to protect the corporate debtor from

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**Application:** In this case, the notice issued by the respondents for stoppage of mining

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## Parties

- **Judges:** Jinan…
- **Appellants:** Sumit B…
- **Respondents:** Orissa Manganese…; The Director of…

## Timeline

- **2017-08-03 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against Orissa Manganese &…
- **2017-08-03 — Moratorium D…**: A moratorium was declared under Section 14 of the Insolvency and Bankruptcy Code (IBC)…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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