# In the matter of GK Industrial Park Private Limited IBA-653-2020

> NCLT judgment dated 2022-01-13. Citation: TCN-2022-NCLT-04446. The case involves an application filed by Edelweiss Asset Reconstruction Company Ltd.…

- **Court:** NCLT
- **Order date:** 13 Jan 2022
- **Citation:** TCN-2022-NCLT-04446
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/gk-industrial-park-private-limited-iba-653-2020-046d5729

## Summary

### Background

The case involves an application filed by Edelweiss Asset Reconstruction Company Ltd. (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016, against G K Industrial Park Private Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor had obtained loan facilities from Punjab National Bank (Assignor Bank), which were later assigned to Edelweiss. The Corporate Debtor defaulted on its repayment obligations, leading to the application for CIRP.

## Facts

G K Industrial Park Private Limited (Corporate Debtor) obtained loan facilities from Punjab National Bank (PNB), referred to as the Assignor Bank, amounting to Rs.77 crore via a Term Loan Agreement dated 23.09.2009. The Corporate Debtor executed mortgage deeds in favor of PNB between 2009 and 2012 as security for the loan. The Corporate Debtor defaulted on repayments, leading to a restructuring of the loan in 2015 with an outstanding of Rs.36.87 Crores. The restructuring involved a supplementary agreement and a guarantee from the Managing Director, Mr. K.G. Muraleedharan. The Corporate Debtor failed to honor the restructured payments, leading PNB to cancel the restructuring agreement. PNB assigned the credit facilities to Edelweiss Asset Reconstruction Company Ltd.

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## Issues and analysis

### Issue 1: Whether the application filed by Edelweiss Asset Reconstruction Company Ltd. under Section 7 of the …

**Ratio:** Section 7(5) of the IBC, 2016 states that if the Adjudicating Authority is satisfied that

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**Reasoning:** The Tribunal considered the evidence presented by the Financial Creditor, including loan

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**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

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**Application:** In this case, the Financial Creditor presented sufficient evidence to

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## Parties

- **Judges:** (Retd.) S.…; Anil Ku…
- **Appellants:** Edelweiss Asset…
- **Respondents:** G K Industrial…
- **Advocates:** Indhumath…; Mr.T.Jayas…

## Timeline

- **2009-09-23 — Term Loan Ag…**: Corporate Debtor borrowed Rs.77 crore from Punjab National Bank (Assignor Bank) via a…
- **2009-09-24 — Mortgage…**: Corporate Debtor executed Mortgage deeds in…

## 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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