The National Company Law Appellate Tribunal (NCLAT) has issued a stay order against the National Company Law Tribunal (NCLT)’s order asking for the initiation of corporate insolvency resolution process against Coal India NSE -0.53 % subsidiary Eastern Coalfields (ECL).
Gulf OilNSE -1.20 % Lubricants India had filed a petition against Eastern Coalfields to start corporate insolvency resolution process as it did not pay the interest of Rs 40.87 lakh on the original debt of Rs 84.71 lakh — outstanding towards goods supplied to the Coal India subsidiary. Following the appeal, NCLT ordered commencement of insolvency resolution against Eastern Coalfields.
At the NCLAT hearing, Coal India’s counsel said the principal had been paid and according to the terms of the agreement, no interest was payable.
Source: Economic Times