Case Law Details
Oriental Bank of Commerce Vs. M/s. Yamuna Infradevelopers Private Limited (NCLT Delhi)
NCLT New Delhi Bench II set aside the termination of a contract that was terminated on account of non-payment of dues during CIRP period
The Hon’ble National Company Law Tribunal, New Delhi Special Bench-II vide its judgement dated 04.03.2022 in IA No. 5484/2021 in CP (IB) No.479/2019 set aside and quashed the order dated 26.11.2020 passed by the Director General, Mines and Geology, State of Haryana wherein the mining contract of the Corporate Debtor was terminated on account of non-payment of monthly instalments during the period of CIRP.
The Liquidator of the Corporate Debtor, Yamuna Infradevelopers Pvt Ltd had preferred an application under Section 60(5) read with Section 33(5) of the Insolvency and Bankruptcy Code, 2016 against the termination order. It was alleged that if the termination order was not quashed, the same would virtually result in death of Corporate Debtor since the mining contract was the only contract of the Corporate Debtor.
The brief facts are that the Corporate Debtor was allotted mining block by the DGMG, Government of Haryana and a mining contract was entered on 11.04.2016. The CIRP was admitted qua the Corporate Debtor vide order dated 01.05.2019 passed by the Hon’ble NCLT and due to reasons of no Resolution Applicant coming forward, an order of liquidation was passed on 18.12.2019.
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