IRL terminates contract with Hindustan Copper
The state owned company has termed the move as wrongful.
June 08, 2017 / 11:02 PM IST
Hindustan Copper today announced it has received a notice from India Resources saying that the latter has "purportedly terminated" the contract for operation and maintenance of its mine in Jharkhand.
State owned Hindustan Copper has termed the notice as "unilateral, wrongful and breach of the present contract"."Hindustan Copper Ltd (HCL) has received a notice dated June 2, 2017 from India Resources Limited (IRL), special purpose vehicle of Eastern Goldfields Ltd (EGL), stating to have purportedly terminated the operation and maintenance of Surda mine contract with effect from 'C' shift of June 2, 2017," the company said.
"HCL has taken stand that the notice is unilateral, wrongful and breach of the present contract for which HCL is entitled to claim liquidated damages from IRL/EGL," it added.There has not been any failure on the part of HCL to pay undisputed monthly payments for a continuous period of 90 days from the date of submission of bill for the works executed, the company said.
Since April 2017, the performance of IRL/EGL has deteriorated sharply and has failed to achieve the monthly production targets thereby miserably failing in its contractual obligations, HCL said."In fact, IRL/EGL has huge outstanding liabilities in the market of more than Rs 40 crore, which is payable to its bankers (creditors), suppliers and wages to its employees, including statutory payments," it said.
Meanwhile, in the interim, HCL said it has taken measures to appoint an agency for restarting the operations of Surda mine at the risk and cost of IRL/EGL.It has also floated tender for award of fresh contract for long term operation and maintenance of Surda mine in Jharkhand.