The applicants, shareholders of SSAB Energy and Minerals Ltd., entered into a Share Transfer Agreement with the respondent on 26.02.2021. The consideration for the transfer of shares was Rs. 9,59,34,418/-, with an additional agreement that proceeds from the sale of existing Iron Ore Stock would be remitted to the applicant. The entire existing stock was sold in May and June 2021, but only Rs. 1 crore was remitted. The Applicant then filed an application under Section 7 claiming a default of Rs. 1.65 Crore. This was dismissed, and the applicant appealed to NCLAT.
Shareholders of SSAB Energy and Minerals Ltd. entered into a Share Transfer Agreement with Utkal Steel & Power Pvt. Ltd. on 26.02.2021.
The consideration for the transfer of shares was Rs. 9,59,34,418/-.
Proceeds from the sale of Iron Ore Stock of SSAB Energy and Minerals Ltd. were to be remitted to the applicant.
The existing stock was sold in May and June 2021 for Rs. 2.65 Crores.
Only Rs. 1 crore was remitted to the Applicant.
The Applicant filed an application under Section 7 claiming a default of Rs. 1.65 Crore.
The application was dismissed by the Adjudicating Authority on 30.08.2022.
The applicant appealed to the Hon'ble NCLAT.
The Hon'ble NCLAT held that the amount in default is a Financial Debt under Section 5(8)(e) of the IBC.
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Shareholders of SSAB Energy and Minerals Ltd.…
Existing stock was sold…
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The applicants, shareholders of SSAB Energy and Minerals Ltd., entered into a Share Transfer Agreement with the respondent on 26.02.2021. The consideration for the transfer of shares was Rs. 9,59,34,418/-, with an additional agreement that proceeds from the sale of existing Iron Ore Stock would be remitted to the applicant. The entire existing stock was sold in May and June 2021, but only Rs. 1 crore was remitted. The Applicant then filed an application under Section 7 claiming a default of Rs. 1.65 Crore. This was dismissed, and the applicant appealed to NCLAT.
Shareholders of SSAB Energy and Minerals Ltd. entered into a Share Transfer Agreement with Utkal Steel & Power Pvt. Ltd. on 26.02.2021.
The consideration for the transfer of shares was Rs. 9,59,34,418/-.
Proceeds from the sale of Iron Ore Stock of SSAB Energy and Minerals Ltd. were to be remitted to the applicant.
The existing stock was sold in May and June 2021 for Rs. 2.65 Crores.
Only Rs. 1 crore was remitted to the Applicant.
The Applicant filed an application under Section 7 claiming a default of Rs. 1.65 Crore.
The application was dismissed by the Adjudicating Authority on 30.08.2022.
The applicant appealed to the Hon'ble NCLAT.
The Hon'ble NCLAT held that the amount in default is a Financial Debt under Section 5(8)(e) of the IBC.
…Shareholders of SSAB Energy and Minerals Ltd.…
Existing stock was sold…
Sign in to view related legal provisions.