Tags:
Journalism of Courage
MUMBAI, JUNE 4: The Steel Authority of India Ltd has initiated legal proceedings against a number of customers who have defaulted in payment for steel products purchased from the company, according to official sources of this public sector steel major.
"Even though such defaultors account for a small percentage of SAIL’s customer base, the move to file such petitions stem from the need to check the trend of non-payment dues," a senior SAIL official said.
SAIL has filed a petition in Indore bench of Madhya Pradesh high court for winding up of STI, an MoU customer, for recoveries of dues. STI had purchased hot and cold rolled coils from SAIL on unsecured credit in 1998-99.
As the company failed to honour its commitment to pay in time and then the cheques issued by it were dishonoured, SAIL filed a suit under section 138 of the Negotiable Instruments Act and another for winding up the company under sections 433, 434 and 439 of the Companies Act. On May 12, 2000 MP high court admitted the petition and issued a show-cause notice to STI.
SAIL has urged teh MP government to use its good offices for clearing up the dues as it is learnt that STI is in the process of finalising arrangements for securitisation of their future earnings with the Unit Trust of India, the official said. SAIL has also approached the UTI to impress upon STI the need to clear its outstanding dues to SAIL before the securitisation deal is struck.
Similarly, SAIL has filed a petition under the Companies Act in Madras high court for winding up of Essar Projects Ltd, which has failed to pay its dues against the supplies of steel material.
In case of Gujarat Steel Tubes, which was declared sick and referred to Board for Industrial & Financial Reconstruction, SAIL has sought the BIFR’s permission to proceed with the case against the company filed in the city civil court in Ahmedabad for recovery of dues.
For other defaulting companies which have been declared sick, SAIL has filed suits for enforcement of personal bonds of the directors of those companies.
