# In the matter of Gavi Siddeswara Steels Indian Private Limited CP (IB) No. 673-7-HDB-2018

> NCLT judgment dated 2019-01-08. Citation: TCN-2019-NCLT-05304. Punjab National Bank, acting as the Financial Creditor, filed a petition against Gavi…

- **Court:** NCLT
- **Order date:** 8 Jan 2019
- **Citation:** TCN-2019-NCLT-05304
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gavi-siddeswara-steels-indian-private-limited-cp-ib-no-673-7-hdb-2018-04f4d4a8

## Summary

### Background

Punjab National Bank, acting as the Financial Creditor, filed a petition against Gavi Siddeswara Steels India Private Limited, the Corporate Debtor, for defaulting on a payment of Rs. 36,62,00,000 out of a total debt of Rs. 102,41,00,000. The petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor was incorporated in 2007 and had approached Indian Overseas Bank for funds to set up a steel plant. The Corporate Debtor faced financial difficulties due to a decline in steel prices and a ban on iron ore mining, leading to the account becoming NPA in December 2014. The Corporate Debtor attempted to revive the unit and proposed a settlement with banks, which

…

## Facts

Punjab National Bank (PNB), the Financial Creditor, filed a petition against Gavi Siddeswara Steels India Private Limited, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The Corporate Debtor defaulted on repaying Rs. 36,62,00,000/- as of June 30, 2018, which was PNB's share of the total outstanding debt of Rs. 102,41,00,000/-. Gavi Siddeswara Steels was incorporated on May 3, 2007, with the objective of setting up an integrated steel plant. The Corporate Debtor approached Indian Overseas Bank (IOB) in October 2010 for a term loan of Rs. 70 Crores and a working capital limit of Rs. 10.12 Crores. A consortium of banks, including PNB and UCO Bank, nominated IOB as the lead bank. The Corporate Debtor executed various documents,

…

## Issues and analysis

### Issue 1: Whether the petition filed by Punjab National Bank under Section 7 of the Insolvency and Bankruptcy …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

…

**Reasoning:** The Adjudicating Authority considered the evidence presented by the Financial Creditor,

…

**Interpretation:** Section 7 of the IBC provides a mechanism for financial creditors to recover

…

**Application:** In this case, the Financial Creditor, Punjab National Bank, demonstrated that

…

## Parties

- **Judges:** Ratakonda…
- **Appellants:** Punjab National…
- **Respondents:** Gavi Siddeswara…
- **Advocates:** М. Атму…; Naresh Kumar…; +1 more

## Timeline

- **2007-05-03 — Incorporation of…**: Gavi Siddeswara Steels India…
- **2010-10-12 — Approach to Indian…**: Corporate Debtor approached Indian Overseas Bank for a term loan and working capital…

## 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)

---

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-chandigarh/gavi-siddeswara-steels-indian-private-limited-cp-ib-no-673-7-hdb-2018-04f4d4a8