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2019 (2) TMI 601 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHICorporate Insolvency Resolution Process - Whether mining lease has been issued by the State Government(s) in terms of the provisions as mentioned in the ‘Coal Mines Development and Production Agreement’? - lease the mines are under occupation or in possession of the ‘Corporate Debtor’ - Held that:- In the present case, as we find that the vesting of the Coal Mines is not complete in absence of any agreement with the State Government in respect to the mines in question, we hold that the ‘Resolution Professional’ on behalf of the ‘Corporate Debtor’ cannot claim that pursuant to lease the mines are under occupation or in possession of the ‘Corporate Debtor’. 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’. 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 February, 2018 is vacated. It will be open to the Respondent- ‘Government of India’ to accept any bid and to create third party interest with regard to mines in question which were earlier allotted vide ‘Coal Mines Development and Production Agreement’ dated 2nd March, 2015 to the ‘Corporate Debtor’. No costs.
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