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Natural gas producer Great Eastern Energy Corporation Limited (GEECL) has demanded more than ₹100 crore from Matix Fertilisers & Chemicals Limited over alleged non-compliance with the Gas Sale and Purchase Agreement (GSPA). GEECL contends that Matix breached the Minimum Guarantee Offtake clause in the agreement signed in July 2017. Following arbitration, GEECL claims nearly ₹112 crore, and the matter is currently in the Delhi High Court with an order for Matix to deposit around ₹100 crore to operationalise the stay.
Matix did not want to make any comment on the development, stating that the matter is sub-judice.
The coal-bed methane gas producer entered into a GSPA with Matix in July 2017, which was valid until August 31, 2018. It claimed that Matix did not honour the Minimum Guarantee Offtake clause.
According to the latest account notes, GEECL had then claimed ₹148 crore, including interest from Matix. GEECL also claimed that, following arbitration, the company owes nearly ₹112 crore, including interest. It subsequently approached a commercial court in Rajarhat to execute the arbitration order.
The high court on January 11 said, "On submission, the award is stayed subject to deposit of the 'entire award amount' along with 50 per cent of the interest within three weeks. The money will be deposited in a fixed deposit receipt."
A Matix spokesperson said, "The referred matter is currently being heard in the honourable High Court, Delhi. The court has also stayed the order of the Commercial Court dated January 8, 2024."
The spokesperson, however, did not respond to further queries about whether Matix is going to deposit the amount to operationalise the stay order and how far the claim amount will impact the company.
A GEECL spokesperson said that according to the Delhi High Court's order, Matix has to deposit around ₹100 crores, consisting of the total award amount and 50 per cent of the interest, to operationalise the stay.
"But the execution order dated January 8, 2024, passed by the Commercial Court, Rajarhat, Kolkata, attaching Matix's property along with bank accounts directing to leave aside a sum of ₹112.79 crore, still holds good and has not stayed," the GEECL spokesperson claimed.
Both companies expressed optimism on their respective stands.
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