Pramod Mittal Cos Settle STC Dues
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.”