Canara Bank Limited & Ors Vs Gupta Power Infrastructure Limited (NCLT Kolkata)
NCLT Kolkata held that application under section 7 of the Insolvency and Bankruptcy Code for initiation of Corporate Insolvency Resolution Process [CIRP] against Gupta Power Infrastructure Limited [Corporate Debtor] admitted for default of Rs. 2888 Crore.
Facts- The application was jointly filed by a consortium of banks under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, M/s. Gupta Power Infrastructure Ltd. The total claimed to be in default is Rs. 28,88,11,82.079/- inclusive of interest as on 20.12.2023.
Notably, in view of the continuous defaults, failed restructuring efforts, and classification of loan accounts as NPAs, the consortium of lenders filed the present application before the NCLT, Kolkata Bench, under Section 7 of the IBC, 2016, seeking initiation of the CIRP against M/s. Gupta Power Infrastructure Ltd.
Conclusion- Held that the amount claimed to be in default is Rs. 2888 crore, the credit facilities were sanctioned by the Banking entities during September 2021- October 2022, and the account of the corporate debtor was declared NPA on and from August – September 2023. The Banks issued notice under Section 13(2) of SARFAESI in November 2023. Hence, the amount claimed to be in default is far in excess of the threshold limit as prescribed under Section 4 of the I&B Code. Thus, we hold that the petition is complete in all respects and well within the limitation.
