High Court admits Essar Projects’s petition against Sterling Ports

MUMBAI: The Bombay High Court has admitted the winding up petition of procurement and construction contractor Essar Projects that alleges non-payment of about Rs 34 crore by Sterling Ports, with which it had signed a contract in 2011 to build a port in Dahej in south Gujarat.

Sterling Ports was due to pay Rs 28.12 crore to Essar Projects immediately upon submission of an advance bank guarantee for the same amount. The petition alleges that Sterling Ports failed to pay the amount even after Essar Projects, promoted by billionaire Ruias, submitted the advance bank guarantee to the company on June 18, 2011.

Essar Projects has said it started construction work at the site and raised a bill of Rs 15.52 crore. According to the petition, Sterling Ports made part payment of Rs 9.79 crore while at Rs 34.15 crore remains outstanding. “I am prima facie satisfied that the amount as claimed by the petitioner is due and payable by the company to the petitioner.

The company has not filed its affidavit in reply despite being served with a copy of the petition as on November 14, 2014. The company has also not come forward to oppose the petition,” said Justice SJ Kathawala, while passing an order in favour of Essar Projects on January 5.