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TMI Blog2019 (2) TMI 601X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Counsel and Ms. P.S. Chandralekha, Advocate. JUDGMEN T SUDHANSU JYOTI MUKHOPADHAYA, J. Pursuant to an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 ('I&B Code' for short) filed by the 'State Bank of India'- ('Financial Creditor'), the 'Corporate Insolvency Resolution Process' was initiated against 'Monnet Ispat & Energy Ltd.'- ('Corporate Debtor'). 2. Much before filing of the application under Section 7, the Government of India, Ministry of Coal, reached 'Coal Mines Development and Production Agreement' dated 2nd March, 2015 with the 'Corporate Debtor' and vesting order 104/18/2015/NA dated 23rd March, 2015 was issued in favour of the 'Corporate Debtor' in respect of Gare Palma IV/7 Coal Mine at Karwahi, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on Agreement'. 7. For determining the issue, it is desirable to refer the relevant documents, including the 'Coal Mines Development and Production Agreement' dated 2nd March, 2015, which reads as follows: "THE COAL MINE DEVELOPMENT AND PRODUCTION AGREEMENT BY AND BEWTEEN THE PRESIDENT OF INDIA AND M/S MONNET ISPAT & ENERGY LIMITED IN RESPECT OF GARE PALMA-IV/7 COAL MINE This Coal Mine Development and Production Agreement is made by and between following: PARTIES: 1. The President of India, acting through the Central Government represented by the Nominated Authority appointed under Section 6 of the Coal Mines (Special Provisions) Ordinance, 2014) read with Coal Mines (Special Provisions) second Ordinance, 2014 (the "Nominated Autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ' dated 2nd March, 2015 shows that the President of India acting through the Government of India reached the agreement with 'Monnet Ispat & Energy Ltd.'- ('Corporate Debtor'), the 'Corporate Debtor' being the successful bidder. The conditions for vesting has been shown in Clause 3 which is subject to compliance of all the eligibility conditions, payment of upfront amount in installments and furnishing of performance security etc. Completion of vesting condition and notice has been shown therein. 9. Post vesting obligations have been shown in Clause 5 which includes payment of the upfront amount in installments. At Clause 5(3), it is mentioned that 'the Mining Lease' pursuant of Section 8(4) (b) read with Section 8(8) of the Ordinance, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Debtor'. 14. The Government of India by its letter dated 13th April, 2017 issued show cause notice to the 'Corporate Debtor' before issuance of the termination letter dated 30th December, 2017 i.e. much prior to initiation of the 'Corporate Insolvency Resolution Process' (18th July, 2017). The 'Corporate Debtor' having failed to act in terms with the said show cause. If the order of cancellation have been passed by the Government of India on 30th December, 2017, it cannot be held to be in violation of Section 14(1)(d) of the 'I&B Code'. 15. In view of the aforesaid findings, no interference is called for against the impugned order dated 16th January, 2018. The appeal is dismissed. Interim order passed by this Appellate Tribunal on 8th F ..... X X X X Extracts X X X X X X X X Extracts X X X X
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