The Kolkata Bench of the National Company Law Tribunal (NCLT) has directed initiation of corporate insolvency resolution process (CIRP) against Eastern Coalfields Ltd (ECL), a subsidiary of Coal India.
The NCLT admitted the insolvency petition filed by Gulf Oil Lubricants India Ltd against ECL, which allegedly refused to pay the interest on debt outstanding towards goods supplied to the company. ECL had, however, paid the principal sum of around 84.71 lakh to the operational creditor, Gulf Oil Lubricants. The interest was payable at the rate of 18 per cent per annum.
The application filed by the operational creditor under Section 9 of the Insolvency and Bankruptcy Code, 2016, is hereby admitted for initiating CIRP against ECL. The morator…
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