Hindustan Copper (HCL) has received a notice from India Resources (IRL), a Special Purpose Vehicle (SPV) of Eastern Goldfields (EGL), stating to have purportedly terminated the operation and maintenance of Surda mine contract with effect from June 02, 2017. The company has taken stand that the above notice is unilateral, wrongful and breach of the present contract for which HCL is entitled to claim liquidated damages from IRL/EGL. There has not been any failure on the part of HCL to pay to undisputed monthly payments for a continuous period of 90 days from the date of submission of bill for the works executed.
Meanwhile, the company has taken measures to appoint an agency for re-starting the operations of Surda mine at the risk and cost of IRL/EGL. HCL has floated tender for award of fresh contract for long term operation and maintenance of Surda Mine.
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. 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.
