NCLAT upholds Monnet Ispat’s coal pact termination

The National Company Law Appellate Tribunal (NCLAT) rejected a plea by the insolvency professional against Union Ministry of Coal’s termination of mining agreement with Monnet Ispat & Energy Ltd., citing the moratorium period under the insolvency and bankruptcy code (IBC).The company was brought under the insolvency process in a case filed by State Bank of India.In 2015, the Coal Ministry had entered into a development and production agreement with Monnet Ispat for a mine in Chhattisgarh.In December 2017, after the initiation of the insolvency proceedings, the mining agreement was terminated.The resolution professional of Monnet Ispat challenged the termination on the ground that it is against the provisions of Section 14 of the IBC in case where a moratorium had been granted. During the period of ‘moratorium,’ the right vested with the company cannot be taken away by the Government of India, the resolution professional argued.

Source : https://www.thehindu.com/todays-paper/tp-business/nclat-upholds-monnet-ispats-coal-pact-termination/article25638751.ece

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