# Kanwar Raj Bhagat & Ors. vs. M/s. Gujarat hydrocarbons and Power Sez Limited & Ors.

> NCLAT judgment dated 2026-08-31. Citation: TCN-2026-NCLAT-00269. The case involves a cluster of appeals arising from the Corporate Insolvency Resolution…

- **Court:** NCLAT
- **Order date:** 31 Aug 2026
- **Citation:** TCN-2026-NCLAT-00269
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/kanwar-raj-bhagat-vs-ms-gujarat-hydrocarbons-and-power-sez-limited-ghpsl-y0ltw

## Summary

### Background

The case involves a cluster of appeals arising from the Corporate Insolvency Resolution Process (CIRP) of M/s Gujarat Hydrocarbons and Power SEZ Limited (GHPSL), which was incorporated to develop a Special Economic Zone (SEZ) on leasehold land from Gujarat Industrial Development Corporation (GIDC). GHPSL availed a credit facility from SREI Infrastructure Finance Limited (SREI), guaranteed by Assam Company India Limited (ACIL). In ACIL's CIRP, SREI's claim was reduced to ₹241.27 crore, and ₹38.87 crore was paid. However, in GHPSL's CIRP, SREI's claim was admitted at an inflated ₹1,885.08 crore, and ACIL was classified as an unsecured related-party financial creditor. A resolution plan by Zaveri & Co. Pvt. Ltd. was approved. GIDC, acting as lessor and regulator,

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## Facts

M/s Gujarat Hydrocarbons and Power SEZ Limited (GHPSL) was incorporated on 17.08.2007 to develop, operate, and maintain a sector-specific Special Economic Zone (SEZ) on leasehold land at Vilayat, Bharuch, Gujarat, taken on lease from Gujarat Industrial Development Corporation (GIDC).

GHPSL availed a credit facility of ₹100 crores from SREI Infrastructure Finance Limited (SREI) in 2011.

Assam Company India Limited (ACIL), the holding/guarantor company, executed a corporate guarantee for the loan on 05.01.2011.

In the CIRP of ACIL, SREI's claim of ₹648.80 crore was reduced by the Interim Resolution Professional to ₹357.29 crore, and further reduced by the Resolution Professional to ₹241.27 crore on 03.04.2018, primarily due to impermissible capitalization of penal interest.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in declining to examine SREI's admitted claim of ₹1,885.08 …

**Ratio:** The Resolution Professional has a statutory duty to correctly collate and verify claims,

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**Reasoning:** SREI's claim of ₹1,885.08 crore in GHPSL's CIRP was significantly higher (7.8 times) than

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**Interpretation:** The RP's duty to verify claims is not merely mechanical; it requires scrutiny,

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**Application:** The admission of SREI's claim at ₹1,885.08 crore without reconciliation with

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## Parties

- **Judges:** N. Sesha…; Arun Ba…
- **Appellants:** Kanwar Raj…; Assam Company…; +1 more
- **Respondents:** M/s. Gujarat…; M/s. Gujarat…; +3 more
- **Other parties:** SREI Infrastructur…; M/s. Srei…; +2 more
- **Advocates:** Ajay Ga…; Shreedhar…; +15 more

## Timeline

- **2007-08-17 — Corporate Debtor…**: M/s Gujarat Hydrocarbons and Power SEZ Limited (GHPSL) was incorporated to develop,…
- **2011-01-05 — Corporate Guarantee…**: Assam Company India Limited (ACIL) executed a corporate guarantee for a credit facility…

## 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)

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