- (1.) Oral Order dictated in the open court on 01.12.2017 It is an application filed by a company namely Mangalam Cement Ltd. u/s 60(5) of the Insolvency and Bankruptcy Code 2016 seeking a direction to Insolvency Resolution Professional to release 41628 metric tons of balance coal owned by the applicant because the applicant herein on 30.04.2008 entered into an agreement with Western Coal Fields Ltd. for supply of coal to the applicant on the terms and conditions mentioned in the "Coal Supply Agreement" dated 30.04.2008. However, as the quality of the coal was not up to the mark, the Applicant entered into an agreement dated 01.09.2012 with the Corporate Debtor in order to "wash" the coal and improve its quality. Accordingly, this Corporate Debtor agreed to take delivery of the coal from Western Coal Fields Ltd., wash the same and have it transported back to the applicant. In pursuance thereof, the Corporate Debtor started collecting the applicant's coal from the Western Coal Fields Ltd. and washing the same. It went well for some time. However, in or around 2014, the Corporate Debtor started defaulting on its obligation to supply the washed coal to the applicant as mentioned in the agreement dated 01.09.2012. When this Corporate Debtor failed to supply coal, on the verbal enquiry made by the applicant, this Corporate Debtor wrote a letter on 26.08.2014 admitting that the said coal of the applicant was lying in its possession for a significant amount of time by which some of it was internally combusted and got deteriorated. Again, this Corporate Debtor wrote another letter on 22.09.2014 stating that it would resume supply at the earliest, but even after lapse of a month, requisite amount of material was not despatched by this Corporate Debtor. For the coal not being supplied, the applicant wrote another letter on 18.12.2014 requesting the Corporate Debtor to despatch the coal to the applicant as assured by the Corporate Debtor. Since the coal, as agreed by the Corporate Debtor, did not come to the applicant, this Corporate Debtor wrote another letter on 29.12.2014 reiterating that it was willing to make good the losses caused, by supplying equivalent quantity of the remaining coal from an "alternative source'.
(2.) To establish the coal was supplied by Western Coal Fields Ltd. to the Corporate Debtor in pursuance of the agreement between the applicant and the corporate Debtor, this applicant placed 'Road Delivery Orders' dated 21.02.2015 and 28.02.2015 to make it clear that ownership of the coal lies with the applicant and debtor was merely appointed by the applicant as a facilitator for washing coal. Since neither coal came to the applicant nor was equivalent quantity supplied by the debtor, this applicant issued one more letter on 05.10.2015 to the Corporate Debtor informing that it would not issue any further orders to the Western Coal Fields Ltd. to let this Corporate Debtor take coal from the Western Coal Fields.
(3.) In repeatedly reiterating the Corporate Debtor to make good the losses happened to the applicant, the Corporate debtor wrote a letter on 20.02.2017 admitting that it would despatch Pet Coke in lieu of the equivalent washed coal amounting to Rs. 14,94,89,386.45 with a request to bear with the Corporate Debtor till they were able to arrange the pet coke as mentioned above.;