State Bank of India Vs Giga Pipe Systems India Pvt. Ltd. (NCLT Delhi)
NCLT Delhi held that application filed under section 7 of the Insolvency and Bankruptcy Code by State Bank of India for initiation of Corporate Insolvency Resolution [CIRP] against Giga Pipe Systems Pvt. Ltd. admitted since financial debt and default established.
Facts- This is an Application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by State Bank of India (the Financial Creditor/Applicant) seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Giga Pipe Systems Pvt. Ltd. (the Corporate Debtor/ Respondent) on the ground that the Corporate Debtor had committed a default amounting to an aggregate sum of Rs. 45,06,15,949.53/- as on 30.04.2025 under multiple credit facilities. The default occurred on the date of 11.10.2022.
Conclusion- Once the Adjudicating Authority is satisfied with the existence of a financial debt, the occurrence of default, and procedural compliance, it is bound to admit the petition. The Authority has limited discretion at this stage and cannot conduct a deeper enquiry into the merits or defences unless the application is incomplete or legally barred.
Held that the application, filed under Section 7 of the IBC by the Financial Creditor, is duly supported by all requisite documents. With no statutory bar to its admission, and in view of the undisputed financial debt and established default, the initiation of CIRP is warranted. Thus, this Adjudicating Authority is of the considered view that the present matter is a fit case for admission under Section 7 of the Code.
