Wind-up order levelled at Gujarat by mine service provider

A company that has provided Gujarat NRE with underground mining service work has applied to have the company wound-up in a move aimed at recovering the money owed to it.

According to the Illawarra Mercury, RUS Mining told the Australian Securities and Investments Commission last Wednesday that it would move to take court action for a winding-up order against Gujarat.

The Federal Court of Australia website says a winding up order can be made if the debt remains unpaid 21 days after a statutory demand.

CFMEU south-western district vice-president Bob Timbs said he understands unpaid suppliers are frustrated, but stated that the company’s new owner should be allowed time to resolve debt issues.

‘‘I understand that they’re owed money, but the CFMEU and all stakeholders have worked together to keep these companies operable so that at some stage if they return to full operation everyone will be paid up 100per cent,’’ Timbs said.

 ‘‘We’ve gone this far and I’d call on everyone to give the new operator of the mine, which is Jindal, who have only really been there for a week, some time to sort out and make good on their debt.’’

Meanwhile, workers at the mine were yesterday asked to take leave without pay despite having their wages withheld for the last 40 days and Arun Jagatramka resigned as chief executive of the company.

Jasbir Singh, Jindal Steel and Power Group’s Australian general manager, is set to replace Jagatramka.

Jindal tool over as majority shareholder of the company in early October.

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