- (1.) It's a Miscellaneous Application filed by the Resolution Professional seeking to quash the operation and effect of termination letter dated 30.12.2017 for termination of Coal Mines Development and Production Agreement (hereinafter referred as "CMDPA") dated 2.3.2015 and vesting order 104/18/2015/NA dated 23.3.2015 in respect of Gare Palma IV/7 Coal Mine at Karwahi, Teh, Tomnar, Dist-Raigad, Chattisgarh (hereinafter referred as "the Mine") issued by Government of India through Ministry of Coal, Office of Nominated Authority, 120, 1 Floor, Shastri Bhavan, New Delhi (Respondent) and also for an interim order staying the operation and effect of the termination letter dated 30.12.2017. Brief facts of this application. The applicant submits that this Bench declared moratorium on 18.7.2017 by admitting CP 1139/NCLT/MAH/2017 filed by State Bank of India for initiating Corporate Insolvency Resolution Process on Monnet Ispat & Energy Ltd (Corporate Debtor) under Section 7 of Insolvency & Bankruptcy Code, 2016 wherein, this Resolution Applicant was appointed to carry the duties and functions of the Resolution Professional during Corporate Insolvency Resolution Process and by virtue of that duty assigned to him, the Applicant has been constrained to approach this Bench for nullification of the termination notice issued by the Respondent on 30.12.2017 for termination of CMDPA dated 2.3.2015 and vesting order dated 23.3.2015.
(2.) The Applicant submits that the aforesaid Mine was allocated to the Corporate Debtor under Coal Mines (Special Provisions) Ordinance 2014vide vesting order dated 23.3.2015 stating that the mining lease was granted on 17.8.2015 (but this applicant has not filed any document reflecting mining lease has been granted to the Corporate Debtor on 17.8.2015) . The Applicant says since this Corporate Debtor became successful bidder in the auction of the mine conducted by the Respondent through Nominating Authority in accordance with Coal Mines Ordinance, 2014, CMDPA was entered in between the Corporate Debtor and the Respondent on 2.3.2015, in pursuance thereof, this Respondent issued a vesting order dated 23.3.2015 under Section 6 of Coal Mines (Special Provisions) Second Ordinance, 2014 ordering that on and from April 1, 2015 (vesting date) and in accordance with the provisions of Sub-Section (4) of Section 8 of the Ordinance, the rights as mentioned in the vesting order (Annexure "D" Page Nos. 94 to 96) shall stand fully and absolutely transferred and vested in the successful bidder, i.e. the Corporate Debtor herein. Thereafter, on 13.4.2017, the Respondent issued a Show Cause Notice to the Corporate Debtor to renew the performance security expired on 19.3.2017 in terms of Clause 6.1.5 of CMDPA within seven days of receipt of the said notice, again on 22.9.2017 another meeting was held by the Scrutiny Committee to examine the reasons leading to delay in operationalisation of the Coal Mine as well as non compliance of the milestones mentioned in CMDPA, to which, the Corporate Debtor on 26.9.2017 issued a letter to the Respondent stating that since the CIRP process has been initiated against it, it requested the Respondent to bear with the Corporate Debtor till a Resolution Plan is in place by January, 2018. Again on 20.10.2017, the Respondent issued another Show-Cause Notice dated 20.10.2017 to the Corporate Debtor calling upon it to show cause as to why action as per Clause 24.3.3 of CMDPA should not be taken against it for termination of the CMDPA and also vesting order in respect of the Mine. To which on 9.11.2017, the Corporate Debtor issued a reply notice stating that no termination could be affected against the Corporate Debtor owing to subsistence of moratorium by virtue of order passed under Section 14 of the Insolvency & Bankruptcy Code, 2016. Despite the Resolution Professional made correspondence on 7.12.2017, 18.12.2017, he says, the Respondent issued the termination letter dated 30.12.2017 for termination of the CMDPA and also the vesting order which are mentioned above.
(3.) The Resolution professional now says that for CMDPA and the vesting order being arbitrarily terminated, duty is cast upon him to take appropriate direction against the Respondent, nullifying the show cause notice for termination of CMDPA and the vesting order.;