# In the matter of GPT Steel Industries Limited C.P. No.(IB) 157-7-NCLT-AHM-2018

> NCLT judgment dated 2019-05-02. Citation: TCN-2019-NCLT-03528. The case involves an application filed by Asset Reconstruction Company (India) Limited under…

- **Court:** NCLT
- **Order date:** 2 May 2019
- **Citation:** TCN-2019-NCLT-03528
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gpt-steel-industries-limited-cp-noib-157-7-nclt-ahm-2018-0421d619

## Summary

### Background

The case involves an application filed by Asset Reconstruction Company (India) Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016, against GPT Steel Industries Limited. The applicant, a financial creditor, sought initiation of the corporate insolvency resolution process (CIRP) against the corporate debtor, GPT Steel Industries Limited, due to outstanding debts. The application was filed before the National Company Law Tribunal (NCLT), Ahmedabad Bench.

## Facts

Asset Reconstruction Company (India) Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against GPT Steel Industries Limited, seeking initiation of the corporate insolvency resolution process (CIRP). Asset Reconstruction Company (India) Limited is a limited company incorporated on 11.02.2002 and registered as a Securitization Reconstruction Company with the Reserve Bank of India. GPT Steel Industries Limited is a company incorporated under the Companies Act, 1956 on 17th October, 2003. The total outstanding amount was Rs. 725,52,70,272/- as of the application date. The debt was classified as a Non-Performing Asset as on 31st December, 2007. The debt was originally owed to State Bank of India and later assigned to Asset

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, should be …

**Ratio:** The Adjudicating Authority is required to admit the application if it is complete and the

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**Reasoning:** The NCLT referred to the decision of Hon'ble NCLAT in Shri Naveen Luthra vs. Bell Finvest

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**Interpretation:** Section 7 of the Insolvency and Bankruptcy Code, 2016, provides the procedure

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**Application:** The NCLT found that the application was complete, and the corporate debtor had

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## Parties

- **Judges:** Manorama…
- **Appellants:** Asset Reconstructi…
- **Respondents:** GPT Steel…; GPT Steel…
- **Advocates:** Navin P…; Raju Ko…; +3 more

## Timeline

- **2002-02-11 — Incorporation of Asset Reconstruction Company…**: Asset Reconstruction Company (India) Limited…
- **2003-10-17 — Incorporation of GPT…**: GPT Steel Industries Limited is…

## 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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