State-owned Hindustan Copper has termed the notice as "unilateral, wrongful and breach of the present contract".
"Hindustan Copper Ltd (HCL) has received a notice dated June 2, 2017 from India Resources Limited (IRL), special purpose vehicle of Eastern Goldfields Ltd (EGL), stating to have purportedly terminated the operation and maintenance of Surda mine contract with effect from 'C' shift of June 2, 2017," the company said.
"HCL has taken stand that the notice is unilateral, wrongful and breach of the present contract for which HCL is entitled to claim liquidated damages from IRL/EGL," it added.
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, HCL said.
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"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," it said.
Meanwhile, in the interim, HCL said it has taken measures to appoint an agency for re-starting the operations of Surda mine at the risk and cost of IRL/EGL.
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