# In the matter of GSA Retail Limited CP (IB) NO.51 -KB-2021

> NCLT judgment dated 2022-06-07. Citation: TCN-2022-NCLT-02344. The case pertains to a petition filed by GSA Retail Limited under Section 10 of the Insolvency…

- **Court:** NCLT
- **Order date:** 7 Jun 2022
- **Citation:** TCN-2022-NCLT-02344
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/gsa-retail-limited-cp-ib-no51-kb-2021-2a58ddc0

## Summary

### Background

The case pertains to a petition filed by GSA Retail Limited under Section 10 of the Insolvency and Bankruptcy Code, 2016 (IBC) for initiation of Corporate Insolvency Resolution Process (CIRP). GSA Retail Limited, the Corporate Applicant, is a company incorporated under the Companies Act, 1956, engaged in the business of dealing with apparel, garments, and appliances. The company's sales have been declining since 2015, leading to financial difficulties. The Corporate Applicant has defaulted on its loan repayments to various financial and operational creditors.

## Facts

GSA Retail Limited, incorporated under the Companies Act, 1956, filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The company, engaged in the business of apparel and appliances, has faced declining sales since 2015. It has defaulted on payments to secured creditors (Rs. 5,79,22,900), unsecured creditors (Rs. 6,38,64,485), and operational creditors (Rs. 8,63,09,931). ICICI Bank and Axis Bank are the secured financial creditors. The Corporate Applicant submitted a board resolution authorizing the filing of the petition and proposed Mr. Vishnu Kumar Tulsyan as the Interim Resolution Professional (IRP). The company's financial difficulties were exacerbated by the lockdown due

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## Issues and analysis

### Issue 1: Whether the petition filed by the Corporate Applicant under Section 10 of the Insolvency and …

**Ratio:** Section 10 of the Insolvency and Bankruptcy Code, 2016 allows a corporate applicant to

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**Reasoning:** The Adjudicating Authority examined the petition and found it to be complete in all

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**Interpretation:** The interpretation of Section 10 requires the Adjudicating Authority to ensure

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**Application:** In this case, the Adjudicating Authority found that the petition was complete

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Respondents:** GSA Retail…

## Timeline

- **2011-01-11 — Incorporation of…**: GSA Retail Limited was incorporated…
- **2021-01-05 — Board Reso…**: Board Resolution dated 5th January 2021 authorizing Mr. Shambhu Nath Jajodia, Director of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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