# In the matter of GEI Power Limited

> NCLT judgment dated 2025-01-22. Citation: TCN-2025-NCLT-00595. The case pertains to an application filed by Union Bank of India under Section 7 of the…

- **Court:** NCLT
- **Order date:** 22 Jan 2025
- **Citation:** TCN-2025-NCLT-00595
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/gei-power-limited-3a4aa060

## Summary

### Background

The case pertains to an application filed by Union Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating Corporate Insolvency Resolution Process (CIRP) against M/s GEI Power Limited due to a default amount of Rs. 31,33,49,707/-. The date of default was mentioned as 30.06.2013. The applicant, Union Bank of India, is a bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970. The respondent, GEI Power Limited, is a corporate entity engaged in manufacturing specialty structural items for power industries.

## Facts

Union Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s GEI Power Limited. The application was filed on 31.05.2024. The default amount was Rs. 31,33,49,707/-, with the date of default being 30.06.2013. GEI Power Limited approached Union Bank of India in 2010 for financial assistance, including a term loan of Rs. 24 Crores, a working capital loan of Rs. 6 Crores, and a bank guarantee of Rs. 5 crores. The credit facilities were granted, and the terms were accepted by GEI Power Limited on 22.05.2010. The term loan included a Foreign Currency Term Loan (FCTL) of Rs. 7 crores. To secure the credit limits, GEI Power Limited and its guarantors executed several

…

## Issues and analysis

### Issue 1: Whether the application filed by Union Bank of India under Section 7 of the Insolvency and …

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

…

**Reasoning:** The NCLT considered the documents and arguments presented by Union Bank of India,

…

**Interpretation:** Section 7 of the IBC provides the mechanism for a financial creditor to trigger

…

**Application:** The NCLT applied Section 7 of the IBC to the facts of the case, finding that

…

## Parties

- **Judges:** Chitra Ha…; KAUSHALENDRA…
- **Appellants:** Union Bank of…
- **Respondents:** M/s GEI Power…; M/s GEI Pow…

## Timeline

- **2010-01-01 — Financial Assistance…**: GEI Power Limited approached Union Bank of India for financial assistance, including a…
- **2010-05-22 — Credit Facilities…**: Union Bank of India granted credit facilities to GEI Power Limited, and the terms were…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

---

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-division-bench-court-i-chenn/gei-power-limited-3a4aa060