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Informist, Tuesday, Sep 10, 2024

 

--NCLAT stays order to admit IBC plea against Essar Oil & Gas 

--CONTEXT: NCLT admitted Greka Green's IBC plea against Essar Oil & Gas 

--NCLAT to hear Essar Oil & Gas' suspended director plea on Nov 6 

 

NEW DELHI – The National Company Law Appellate Tribunal today stayed an order by the National Company Law Tribunal admitting a petition by Greka Green Solutions (India) Ltd to start insolvency proceedings against Essar Oil and Gas Exploration and Production Ltd. The order admitting the plea against the Essar Group entity was passed by the Ahmedabad bench of the company law tribunal. 

 

The appellate tribunal issued a notice to Greka Green on a petition by Pankaj Kalra, the suspended director of Essar Oil and Gas Exploration, and listed the case for hearing on Nov 6.

 

On Friday, the Ahmedabad bench admitted the petition against Essar Oil and Gas Exploration for an unpaid amount of 243.83 mln rupees. Today, the counsel for Kalra said that the parties had entered into a settlement in which the last instalment was supposed to be paid. However, the insolvency petition was filed by Greka Green, disregarding the settlement between the parties, said the counsel.

 

The last settlement instalment was also paid by Essar Oil and Gas Exploration before the insolvency petition was admitted, said the counsel. Essar Oil and Gas Exploration has a turnover of 8 bln rupees and 425 employees also working there, said the counsel. The Ahmedabad bench should not have admitted the insolvency petition, said the counsel, adding that the tribunal had noticed the settlement but did not deal with it. 

 

Greka Green Solutions had moved the Ahmedabad bench of the tribunal saying Essar Oil and Gas Exploration had not paid the invoices arising out of the drilling services provided by the operational creditor as per a contract between the parties. A settlement agreement was reached between the parties, which Essar Oil and Gas Exploration had acknowledged but did not pay the amount, Greka Green Solutions had said. Essar Oil and Gas Exploration contested Greka Green Solutions' plea and said the dues payable to the latter did not constitute an operational debt and hence not maintainable.  

 

On Friday, the Ahmedabad bench had appointed Mohit Bipinchandra Adatiya as the interim resolution professional to carry out the functions as per the Insolvency and Bankruptcy Code, 2016. Further, the tribunal had ordered a moratorium against Essar Oil and Gas Exploration in terms of Section 14 of the code. The tribunal had said Greka Green Solutions had proved that there was a debt and despite service of notice to Essar Oil and Gas Exploration, the amount was not paid by the latter.  End

 

Reported by Surya Tripathi

Edited by Aditya Sakorkar

 

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