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The Supreme Court has ordered Global Steel Holding Ltd (GSHL) and Global Steel Philippines Inc. (GSPI) to pay ₹ 600 crore as interest to State Trading Corporation for settling a dispute.
In its order dated December 8, the apex court has ruled: “The parties have requested for termination of these proceedings finally in this appeal itself, and secondly, the outstanding dues have already been cleared by the respondents during the pendency of this appeal, though late, leaving only a limited controversy alive regarding payment of interest.”
The deal was signed in 2005 to sell coils in Philippines. There arose a dispute over settlement of dues to be paid to STC by GSHL & GSPI. In order to settle the dispute, two tripartite settlements were signed.
The second one was signed in 2012 wherein the Chairman of GSHL & GSPI, Pramod Mittal, furnished a personal guarantee to pay Rs 1,610 crore to STC. But he defaulted on it. In 2015, the case was dismissed by the Delhi High Court, after which STC moved the Supreme Court.
In its judgment, the Supreme Court has asked Pramod Mittal to pay Rs 1,610 crore to STC along with a penal interest of Rs 600 crore, totalling Rs 2,210 crore.
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