# Naksh Steel Limited vs. Gujarat Toolroom Limited

> NCLT judgment dated 2026-09-30. Citation: TCN-2026-NCLT-01083. Naksh Steel Limited (Operational Creditor) filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 30 Sept 2026
- **Citation:** TCN-2026-NCLT-01083
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-ahmedabad/gujarat-toolroom-limited-kfbcu

## 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 debt arose from supplies made by Naksh Steel Limited to Gujarat Toolroom Limited between 16.01.2025 and 20.01.2025, under a supply agreement dated 16.12.2024. A demand notice was issued on 20.01.2026, but the Corporate Debtor failed to make payment, citing temporary liquidity constraints, despite acknowledging the debt and expressing willingness to pay.

## Facts

Naksh Steel Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.

The application was filed against Gujarat Toolroom Limited (Corporate Debtor) for a default of an amount of Rs. 26,20,56,668/-.

The default had occurred on and from 20.01.2025.

Naksh Steel Limited was earlier incorporated as a private limited company and subsequently converted into a public limited company under the Companies Act, 2013, which conversion was intimated to the Corporate Debtor vide letter dated 19.01.2025.

…

## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Naksh …

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

…

**Reasoning:** The NCLT observed that the Corporate Debtor did not dispute the business relationship,

…

**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP when an

…

**Application:** In this case, Naksh Steel Limited, as an operational creditor, demonstrated an

…

## Parties

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

## Timeline

- **1983-03-25 — Incorporation of…**: Gujarat Toolroom Pvt. Ltd. (later Gujarat Toolroom Limited) was originally incorporated…
- **1991-09-11 — Name Change of…**: The name of Pirnmatic Engineering 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)

---

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/nclt-ahmedabad/gujarat-toolroom-limited-kfbcu