Team News Riveting
New Delhi, August 18
Orissa Minerals Development Company (OMDC), a subsidiary of state-owned Rashtriya Ispat Nigam Limited (RINL), had got a relief from the National Company Law Tribunal (NCLT) that disposed of the order that facilitated insolvency proceedings against the company.
“This is to place on record that the cases bearing nos. Company Appeal (AT) (Insolvency) No. 888 / 2020 and Company Appeal (AT) (Insolvency) No. 889 / 2020 [pending between OMDC Vs. Jai Balaji Industries Ltd.] before NCLAT, New Delhi, wherein OMDC has challenged the orders of NCLT (Kolkata Bench) passed on 30.09.2020 admitting OMDC to Insolvency Process and appointing IRP has been disposed of by NCLAT, New Delhi vide its judgment dated 17.08.202,” OMDC said in a regulatory filing today.
OMDC, which owns several iron ore blocks but doesn’t have existing mining rights, was dragged to the Kolkata-bench of National Company Law Tribunal (NCLT) by its operational creditor, Jai Balaji Industries. The court accepted the bankruptcy case and even appointed a resolution professional to execute the process which would have resulted in either change in ownership or liquidation.
The NCLT said in its order that un effect, Order(s) passed by the Ld. Adjudicating Authority appointing ‘Interim Resolution Professional’, declaring moratorium, freezing of account
and all other Order(s) passed by Adjudicating Authority pursuant to the Impugned Order, are set aside. The Adjudicating Authority will now close the proceedings. The ‘Corporate Debtor’ is released from all the rigours of law and is allowed to function independently through its Board of Directors with immediate effect. Needless to add, the IRP fees would be paid by the ‘Operational Creditor’.
