The National Company Law Appellate Tribunal (NCLAT) has dismissed the bankruptcy case against Essar Oil and Gas Exploration and Production Ltd (EOGEPL) in India, overturning an earlier ruling by the National Company Law Tribunal (NCLT). The case was initiated by Greka Green Solutions (India) Ltd, which claimed dues of ₹24.38 crore. The NCLAT ruling acknowledges a prior settlement agreement, marking a major legal win for Essar Oil and Gas Exploration.
The National Company Law Appellate Tribunal (NCLAT) has overturned the bankruptcy proceedings initiated against Essar Oil and Gas Exploration and Production Ltd (EOGEPL), a subsidiary of the Essar Group. The ruling nullifies a previous order from the National Company Law Tribunal (NCLT) in Ahmedabad, which had admitted an insolvency plea filed by Greka Green Solutions (India) Ltd.
Essar Oil and Gas Exploration and Production Ltd is a leading energy company in India, specializing in coal bed methane (CBM) gas exploration and production. The company is a key player in India’s natural gas sector, focusing on sustainable energy solutions.
Legal Dispute and Tribunal’s Ruling
The insolvency plea was originally filed by Greka Green Solutions, which claimed that EOGEPL owed it ₹24.38 crore (approximately $2.96 million) for operational expenses. The NCLT had accepted the petition on September 6, 2024, and appointed an interim resolution professional (IRP) to manage the company’s affairs. However, on September 10, 2024, the NCLAT issued a stay on the ruling pending further review.
In its final decision, the NCLAT ruled that a settlement agreement had been reached before the insolvency petition was filed. EOGEPL’s suspended director, Pankaj Kalra, argued that the company had already made its final payment under the settlement terms, making the insolvency proceedings unjustified.
Company’s Response and Financial Stability
EOGEPL emphasized that it remains a profitable business with annual revenues of ₹870 crore and an operating profit of ₹625 crore. “The suspension of insolvency proceedings allows us to continue our core operations without disruption,” the company stated.
A 12-Year-Old Dispute
The legal battle dates back to December 2, 2013, when Essar Oil Limited (EOL) signed a drilling services contract with Greka Green Solutions. On June 19, 2017, EOL transferred these obligations to EOGEPL. A settlement was reached in 2019 with staggered payments over nine installments. However, Greka alleged non-compliance by Essar, leading to a revised payment plan in 2020, which also failed to materialize. In October 2022, Greka issued a demand notice, eventually filing for insolvency.
Following NCLAT’s ruling, the bankruptcy plea stands dismissed, allowing EOGEPL to continue operations without further legal constraints.
