Pramod Mit­tal Cos Set­tle STC Dues

The Economic Times - - Pure Politics - Sa­man­waya.Rau­tray @times­group.com

New Delhi: The Supreme Court has closed the le­gal pro­ceed­ings launched by State Trad­ing Cor­po­ra­tion (STC) 13 years ago to re­cover dues from Pramod Mit­tal-owned Global Steel Hold­ing and Global Steel Philip­pines Inc., af­ter the lat­ter paid up the last part of the prin­ci­pal due and promised an­other .₹ 600 crore as in­ter­est.

The case re­lates to a tri­par­tite agree­ment signed be­tween pub- lic sec­tor STC and the two firms on April 4, 2005 for sup­ply of raw ma­te­rial by the for­mer. STC had taken Mit­tal to the Delhi High Court af­ter his firms failed to pay up for the sup­plies they re­ceived.

The mat­ter had moved to SC af­ter HC dis­missed STC’s plea in March 2015 say­ing it lacked ju­ris­dic­tion to ex­e­cute set­tle­ments be­tween the two sides signed out­side of In­dia. At the last hear­ing in the top court, Mit­tal had de­posited .₹ 800 crore as pay­ment of the prin­ci­pal amount. He will now pay an­other .₹ 600 crore as in­ter­est, cal­cu­lated at 8% per an­num, within 12 weeks. Be­fore this, he had paid an­other .₹ 810 crore to STC.

A bench com­pris­ing Jus­tice Abhay Manohar Sapre and Jus­tice Indu Mal­ho­tra dis­missed the pe­ti­tion on Thurs­day, say­ing, “Upon pay­ment of the (.`600 crore) amount by 28.02.2019, all claims aris­ing out of the two Set­tle­ment Agree­ments, would stand fi­nally set­tled, and put a com­plete clo­sure to all pend­ing pro­ceed­ings of any na­ture, what­so­ever, be­tween the par­ties, wher­ever filed and/ or pend­ing against each other.”

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