NCLT orders insolvency resolution process against CIL subsidiaryIn a setback to Coal India (CIL), the Kolkata bench of the National Company Law Tribunal (NCLT) has ordered commencement of the corporate insolvency resolution process against its subsidiary Eastern Coalfields (ECL).
The tribunal has admitted the insolvency petition, filed by Hinduja Group-controlled Gulf Oil Lubricants India (GOLIL), against ESL under Section 9 of the Insolvency & Bankruptcy Code (IBC), as the coal miner refused to pay the interest amount on the original debt towards goods supplied.
Although ECL had already paid the principal sum of around `84.71 lakh to GOLIL, one of its operational creditors, the former did not pay the amount of interest at the …
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