# In the matter of G K Steel and Allied Industries Ltd. RST.A-2-2021 in CP-1006-2018

> NCLT judgment dated 2021-11-01. Citation: TCN-2021-NCLT-00641. The case involves an application filed by the suspended Director of M/s. GK Steel and Allied…

- **Court:** NCLT
- **Order date:** 1 Nov 2021
- **Citation:** TCN-2021-NCLT-00641
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/g-k-steel-and-allied-industries-ltd-rsta-2-2021-in-cp-1006-2018-f5e648f5

## Summary

### Background

The case involves an application filed by the suspended Director of M/s. GK Steel and Allied Industries Ltd. under Section 60(5) of the IBC, 2016, seeking to set aside an order passed in I.A. Nos. 693 & 694 of 2020 and to restore the applications I.A. Nos. 693 & 694 of 2020 on the file of the National Company Law Tribunal (NCLT). The initial applications (I.A. Nos 693 & 694 of 2020) were filed to direct the 1st Respondent to exclude the amount of interest claimed by the 2nd and 3rd Respondents towards the outstanding dues of the Corporate Debtor for the period of 01.06.1999 to 31.12.2016.

## Facts

K. Narayanasamy, the suspended director of M/s. GK Steel and Allied Industries Ltd., filed an application under Section 60(5) of the IBC, 2016, seeking to set aside the order passed in I.A. Nos. 693 & 694 of 2020 and to restore the applications I.A. Nos. 693 & 694 of 2020. The initial applications were filed to direct the 1st Respondent (J.Karthiga, Resolution Professional) to exclude the amount of interest claimed by the 2nd (State Bank of India) and 3rd (IFCI Limited) Respondents towards the outstanding dues of the Corporate Debtor (GK Steel and Allied Industries Ltd.) for the period of 01.06.1999 to 31.12.2016. The applications were dismissed for non-prosecution due to the applicant's counsel being unable to attend the hearing on 07.12.2020 due to a

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## Issues and analysis

### Issue 1: Whether the Tribunal was justified in dismissing …

**Ratio:** The Tribunal has the power to dismiss applications for non-prosecution if the applicant

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**Reasoning:** The Tribunal noted that the applications were dismissed because the applicant's counsel

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**Interpretation:** The Tribunal interpreted the rules regarding non-prosecution to allow for

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**Application:** In this case, the Tribunal accepted the applicant's explanation of a technical

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Appellants:** K. Naraya…
- **Respondents:** GK Steel and…; J. Kart…

## Timeline

- **2020-10-16 — Hearing…**: The applications were listed for hearing before…
- **2020-12-07 — Adjournment and…**: The case was adjourned to this date, but due to a technical glitch, the applicant's…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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