# In the matter of G M Infinite Dwelling (India) Pvt. Ltd. vs. State Bank of India Limited

> HC judgment dated 2024-08-01. Citation: TCN-2024-HC-00055. M/S. G. M. INFINITE (DWELLING) INDIA PVT. LTD. filed a Writ Petition in the High Court of Karnataka…

- **Court:** HC
- **Order date:** 1 Aug 2024
- **Citation:** TCN-2024-HC-00055
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/g-m-infinite-dwelling-india-pvt-ltd-vs-state-bank-of-india-limited-1cdc35e6

## Summary

### Background

M/S. G. M. INFINITE (DWELLING) INDIA PVT. LTD. filed a Writ Petition in the High Court of Karnataka against STATE BANK OF INDIA LIMITED. The petitioner sought interim relief to stay an order and further proceedings pursuant to an order passed by the NCLT, Bengaluru. The petitioner's counsel argued that the impugned order under Section 7 of the Insolvency and Bankruptcy Code, 2016 is not legally sustainable, and the petitioner is willing to deposit Rs. 5 crores with the respondent-Bank.

## Facts

M/S. G. M. INFINITE (DWELLING) INDIA PVT. LTD. filed a Writ Petition against STATE BANK OF INDIA LIMITED in the High Court of Karnataka. The petitioner sought a stay on an order passed by the NCLT, Bengaluru, in C.P (IB) No.4/BB/2024 dated 2024-07-30. The petitioner's counsel argued that the order under Section 7 of the Insolvency and Bankruptcy Code, 2016, was not legally sustainable, relying on a valuation report indicating significant receivables and the decision in Vidarbha Industries Power Limited Vs. Axis Bank Limited. The petitioner expressed willingness to deposit Rs. 5 crores with the respondent-Bank. The bank's valuation report stated the total completed receivables is Rs.1,50,21,42,000/- and present condition of the villas of the project is valued at

…

## Issues and analysis

### Issue 1: Whether the impugned order passed under Section 7 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** The ratio is based on the interpretation of Section 7 of the Insolvency and Bankruptcy

…

**Reasoning:** The court considered the petitioner's argument that the NCLT order was not legally

…

**Interpretation:** Section 7 of the Insolvency and Bankruptcy Code, 2016, is interpreted to mean

…

**Application:** The court applied the ratio to the facts of the case, considering the

…

## Parties

- **Judges:** HEMANT CHANDANGOUD…
- **Appellants:** M/S. G. M.…
- **Respondents:** STATE BANK OF…
- **Other parties:** Kohi…

## Timeline

- **2024-07-30 — NCLT Ord…**: Order passed by NCLT, Bengaluru in C.P (IB) No.4/BB/2024, which the petitioner seeks to…
- **2024-08-01 — High Court…**: High Court of Karnataka hears the writ petition and grants an interim order staying the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/high-courts-new-delhi/g-m-infinite-dwelling-india-pvt-ltd-vs-state-bank-of-india-limited-1cdc35e6