# Central Bank of India vs. Gilco Steels Limited

> NCLT judgment dated 2026-08-25. Citation: TCN-2026-NCLT-00933. Central Bank of India, as the Financial Creditor, filed a petition under Section 7 of the…

- **Court:** NCLT
- **Order date:** 25 Aug 2026
- **Citation:** TCN-2026-NCLT-00933
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/central-bank-of-india-vs-gilco-steels-limited-sbnkq

## Summary

### Background

Central Bank of India, as the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Gilco Steels Limited (Corporate Debtor) for the initiation of the Corporate Insolvency Resolution Process (CIRP). The petition claims a financial debt of Rs. 58,59,98,599.12/-, which is significantly above the prescribed pecuniary threshold of Rs. 1 crore.

## Facts

Central Bank of India filed a petition under Section 7 of the IBC 2016 against Gilco Steels Limited.

The petition seeks initiation of the Corporate Insolvency Resolution Process (CIRP) against Gilco Steels Limited.

The amount of debt claimed in Part IV of the application is Rs. 58,59,98,599.12/-.

This claimed debt amount is substantially above the prescribed threshold limit of Rs. 1 crore under Section 4 of the IBC.

Gilco Steels Limited was sanctioned various loan facilities by Central Bank of India.

The Corporate Debtor defaulted in the payment of interest and principal, leading to its account being classified as NPA on 27.09.2013.

A demand notice under Section 13(2) of the SARFAESI Act was issued on 11.11.2013 to the Corporate Debtor and its guarantors.

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## Issues and analysis

### Issue 1: Whether the petition filed under Section 7 of the IBC 2016 for initiating CIRP against Gilco Steels …

**Ratio:** A petition under Section 7 of the IBC 2016 must be admitted if a financial debt is due

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**Reasoning:** The document explicitly states that the financial debt remains due and payable, and

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**Interpretation:** Section 7 of the IBC empowers the Adjudicating Authority to admit a petition

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**Application:** Based on the established facts of financial debt, default, and compliance with

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## Parties

- **Judges:** SHRI. K.K.…; SHRI. ASHOK KUMAR…
- **Appellants:** Central Bank of…
- **Respondents:** Gilco Steels…
- **Other parties:** Committee of…; Saral…; +4 more
- **Advocates:** Naren P…; Divya S…

## Timeline

- **2013-09-27 — Account Classified as…**: The Corporate Debtor's account was classified as Non-Performing Asset (NPA) by the…
- **2013-11-11 — Demand Notice…**: A demand notice under Section 13(2) of the SARFAESI Act was issued to the Corporate…

## 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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