Why Ultratech moved Supreme Court against Coal Ministry

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New Delhi | Published: January 10, 2018 5:41:27 AM

The Supreme Court on Tuesday stayed the invocation of bank guarantee of Rs 1.65 crore given by Ultratech Cement pursuant to a 2008 contract for the allocation of a coal block which was held void by the SC in 2014.

supreme court in ultratech case, ultratech coal ministry case, coal ministry ultratech caseA bench headed by Justice J Chelmeshwar also issued notice to the coal ministry asking why it should be allowed to enforce obligations under a void contract for allotment of coal blocks. (PTI)

The Supreme Court on Tuesday stayed the invocation of bank guarantee of Rs 1.65 crore given by Ultratech Cement pursuant to a 2008 contract for the allocation of a coal block which was held void by the SC in 2014. A bench headed by Justice J Chelmeshwar also issued notice to the coal ministry asking why it should be allowed to enforce obligations under a void contract for allotment of coal blocks. Since the government’s action in allocating the coal blocks has been declared illegal in August 2014 by the SC, there is no question of any recovery or encashment of bank guarantee in furtherance of the allotment, Ultratech’s counsel Vinita Bhargava said, adding that for a void contract, a party cannot ask for damages on account of breach of the void contract.

RBI plea against Jaiprakash

The apex court will on Wednesday hear an RBI plea seeking permission to initiate insolvency proceedings against Jaiprakash Associates, the parent firm of Jaypee Infratech. It now wants to follow the recommendations of its internal advisory committee that identified JAL as the company against which insolvency proceedings needed to be initiated as per IBC provisions.

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