Mauritius-based co files insolvency petition against Dalmia Cement arm

Kolkata: Mauritius-based GuarantCo has filed a petition for insolvency against Calcom Cement India, a subsidiary of Dalmia Cement (Bharat), over alleged non-payment of around Rs 100 crore. GuarantCo, a financial creditor of the cement manufacturer, filed the insolvency petition against the company at the Guwahati bench of the National Company Law Tribunal (

NCLT

) under Section 7 of the Insolvency and Bankruptcy Code (IBC).

According to the petition, there was a total default of around Rs 100 crore by Calcom Cement as on September 27, 2019.

Dalmia Cement, however, said: “Calcom Cement had not committed any default in making payments to Guarantco.

“They are using the IBC to put pressure on Calcom Cement,” a Dalmia Cement spokesperson alleged.

The spokesperson added, “On two previous occasions, the RBI had rejected GuarantCo’s application. However after Calcom’s efforts, their third application was approved by RBI capping the payment that could be made to GuarantCo. Guarantco Ltd. is demanding more payments on different counts which are neither in consonance with the RBI approval, nor have been agreed by us. They are using the IBC to put pressure on Calcom Cement.”

GuarantCo, in its insolvency petition, said, “In and around 2007, Calcom Cement India approached the financial creditor to stand as guarantor for the loan facility(ies) it had availed from various Indian banks. The financial creditor agreed to execute guarantee(s) in favour of the Indian banks w.r.t loan facilities availed by the corporate debtor from the Indian banks (Axis Bank and HDFC Bank)...pursuant to the default made by corporate debtor in the year 2011 w.r.t loan facilities it had availed from Axis Bank and HDFC Bank, the guarantees executed by financial creditor as Guarantor were invoked by both the banks in their capacity as beneficiaries of the said Guarantees.”