HC seeks Tata Steel BSL Limited’s response on plea by Brace Iron & Steel1 min read . Updated: 17 Sep 2020, 08:25 PM IST
The plea alleges that the the Tata firm has defaulted in making payment of the admitted monthly lease rentals and committed fundamental breach of the Lease Agreement of 2015
New Delhi: The Delhi High court on Thursday sought response from Tata Steel BSL Limited on a plea by Brace Iron & Steel Private Limited seeking directions to restrain the company from utilizing the 4 Oxygen Plants/Leased Equipment situated at the integrated steel plant, Meramandli, Odisha alleging default in payments of the lease rentals and to immediately pay the entire defaulted amount of around 79 crores including interest.
The plea alleges that the the Tata firm has defaulted in making payment of the admitted monthly lease rentals and committed fundamental breach of the Lease Agreement of 2015.
“As a direct consequence of non-payment of the monthly rentals by the Respondent, the Petitioner is being forced to face an onerous financial situation in form of increasing debt liability to the lenders/financial institutions." It added.
The plea further alleges that Tata Steel BSL Limited is trying to create an artificial liquidity crunch for the Petitioner by wilfully defaulting in monthly lease payments because of which the Petitioner is unable to pay its liabilities to banks and other financial institutions.
“This will lead to Petitioner's bankruptcy and the Respondent would achieve its ill- conceived goal of acquiring the 4 Oxygen Plants/ Leased Equipment by seeking huge discounts from financial institutions of their public monies." It said.
The next date of hearing is on 25 September.