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Incomplete Information Memorandum and Unverified SEZ Approval Derail CIRP Plan: NCLAT

Case Law Details

TaxGuru Citation
2026 taxguru.in 13739
Case Name
Kanwar Raj Bhagat Vs Gujarat hydrocarbons And Power Sez Limited (NCLAT Delhi)
Appeal Number
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Date of Judgement/Order
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Courts
Delhi NCLAT, NCLAT
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Kanwar Raj Bhagat Vs Gujarat hydrocarbons And Power Sez Limited (NCLAT Delhi)

Summary: The National Company Law Appellate Tribunal, Principal Bench, New Delhi, considered a cluster of connected appeals arising from the Corporate Insolvency Resolution Process (CIRP) of M/s Gujarat Hydrocarbons and Power SEZ Limited (GHPSL). The first and lead appeal was filed by Kanwar Raj Bhagat, the suspended director of the Corporate Debtor, against the NCLT, New Delhi order dated 13.09.2023 in I.A. No. 1764 of 2021. Connected appeals concerned Assam Company India Limited (ACIL), the corporate guarantor, and Gujarat Industrial Development Corporation (GIDC), the lessor and statutory regulator of the leasehold SEZ land. The Tribunal treated the matters as two interrelated sets because they arose from the same insolvency matrix, involved the same underlying debt and Financial Creditor, and concerned the same Corporate Debtor and its principal asset.

GHPSL had obtained a ₹100 crore credit facility from SREI Infrastructure Finance Limited in 2011, guaranteed by ACIL. During ACIL’s CIRP, SREI’s claim of about ₹648.80 crore was reduced first to ₹357.29 crore and then to ₹241.27 crore after exclusion of capitalised penal interest. The NCLT, Guwahati upheld the reduction on 23.07.2018 and the NCLAT affirmed the position on 01.02.2019. ACIL’s resolution plan was later approved and ₹38.87 crore was paid to SREI. When SREI subsequently invoked Section 7 of the Insolvency and Bankruptcy Code against GHPSL, its claim was admitted at ₹1,885.08 crore. The suspended director challenged that admission, while ACIL sought recognition as a secured Financial Creditor to the extent of ₹38.87 crore paid under its resolution plan.

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Author Info

CA Sandeep Kanoi
Qualification: Graduate, CA in Job / Business, DD
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 24,382

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