# Naksh Steel Limited vs. Gujarat Toolroom Limited

> NCLT judgment dated 2026-09-30. Citation: TCN-2026-NCLT-01137. Naksh Steel Limited (Operational Creditor) filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 30 Sept 2026
- **Citation:** TCN-2026-NCLT-01137
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-ahmedabad/gujarat-toolroom-limited-6n537

## Summary

### Background

Naksh Steel Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Gujarat Toolroom Limited (Corporate Debtor) for a default of Rs. 26,20,56,668/-. The default arose from unpaid invoices for goods supplied under a Supply Agreement dated 16.12.2024, with the default date reckoned as 20.01.2025. A demand notice was issued on 20.01.2026. The Corporate Debtor acknowledged the debt and expressed willingness to pay but attributed the non-payment to temporary liquidity constraints.

## Facts

An application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Naksh Steel Limited (Operational Creditor) against Gujarat Toolroom Limited (Corporate Debtor).

The default amount claimed is Rs. 26,20,56,668/-.

The date of default is reckoned as 20.01.2025.

Naksh Steel Limited is engaged in steel manufacturing, trading of building materials, and supply of infrastructure and building products.

The Applicant supplied various products to the Corporate Debtor pursuant to a Supply Agreement dated 16.12.2024.

Supplies were effected during the period from 16.01.2025 to 20.01.2025, and corresponding invoices were raised.

A demand notice under Section 8 of the IBC, in Form-3 and Form-4, was issued on 20.01.2026.

…

## Issues and analysis

### Issue 1: Whether Naksh Steel Limited, the Operational Creditor, has established a default by Gujarat …

**Ratio:** An application under Section 9 of the IBC can be admitted if there is an undisputed

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**Reasoning:** The Corporate Debtor admitted the business relationship, the supply of goods, and the

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**Interpretation:** A clear admission of debt and default, even with an explanation of liquidity

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**Application:** The NCLT found that the debt is due and acknowledged, and the Corporate Debtor

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Naksh Steel…
- **Respondents:** Gujarat Toolroom…
- **Other parties:** CoC…; Iqbal Singh…; +1 more
- **Advocates:** Kriti Ko…; Rajiv C…; +1 more

## Timeline

- **1983-03-25 — Incorporation of…**: Gujarat Toolroom Pvt. Ltd. (later Gujarat…
- **1991-09-11 — Name Change of…**: The name of Gujarat Toolroom Pvt. Ltd.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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