Greka insolvency imminent as NCLT takes over
Greka Drilling's demise seems imminent as the National Company Law Tribunal (NCLT) prepares to hear a petition by Dubai-based Arabian Oilfield Supplies & Services.
NCLT's main Delhi division was to begin hearing the case on July 9 (2024), following a May 17 (2024) order by Justice Dharmesh Sharma of the Delhi High Court. However, a source says the 'case file' could not reach the NCLT in time, and the case is now scheduled for August 11 (2024).
Founded by UK-based Randeep Singh Grewal, Greka owes Arabian money for casing pipes supplied in December 2014 to drill 100 wells at Essar's 500-sq km Raniganj East CBM block RG (E) CBM-2001/1 where it deployed five rigs under a $65m one-year assignment. All five rigs are now lying idle at yards in West Bengal, we are told.
According to the May 17 (2024) Delhi High Court order, Arabian is claiming $723,193.03 with 18% annual interest. As payment was not made despite repeated reminders, Arabian filed a winding-up petition against Greka in the Delhi High Court in 2018.
In his May 17 (2024) order, Justice Sharma said Arabian's 'winding up' petition "is maintainable", but he is transferring the case to the NCLT "since these proceedings are still at a nascent stage and no substantive orders have been passed towards the winding up of the respondent company (Greka)." Also, while Arabian's petition was pending, the Insolvency and Bankruptcy Code, 2016 and the Companies Act, 2013 became law.
Under the Companies Act, 2013, winding up petitions before any court stand transferred to the NCLT, set up under the Insolvency and Bankruptcy Code, except in cases at an advanced stage or which have been 'heard' by the courts and where only the rulings are awaited. Justice Sharma noted that Arabian's petition was "admitted" on August 14 (2018) when the court appointed an 'Official Liquidator.' "However, subsequent to this, no substantive orders have been passed in furtherance of winding up of the respondent company (Greka), and no such steps have been taken by the Official Liquidator, which may suggest that these proceedings are at an advanced stage," notes Sharma.
"Apart from the appointment of a Liquidator, the present proceedings have been a complete non-starter."