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

> NCLT judgment dated 2022-06-07. Citation: TCN-2022-NCLT-02350. 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-02350
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/gsa-retail-limited-cp-ib-no51-kb-2021-f4f8e3f4

## Summary

### Background

The case pertains to a petition filed by GSA Retail Limited under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). GSA Retail Limited, incorporated in 2011, is 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 payments to its secured creditors, unsecured creditors, and operational creditors.

## Facts

GSA Retail Limited, incorporated on January 11, 2011, filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of CIRP. The company, engaged in the retail business of apparel and appliances, has experienced declining sales since 2015 due to store closures and reduced prices on old stock. The company defaulted on payments to financial creditors (ICICI Bank and Axis Bank are secured financial creditors, while NBFCs are unsecured financial creditors) and operational creditors. The company's financial difficulties were exacerbated by the COVID-19 lockdown. The Corporate Applicant has proposed Mr. Vishnu Kumar Tulsyan as the Interim Resolution Professional (IRP). The company owes Rs.5,79,22,900 to the secured creditors and

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## Issues and analysis

### Issue 1: Whether the petition filed by GSA Retail Limited under Section 10 of the Insolvency and Bankruptcy …

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

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**Reasoning:** The court found that the petition filed by GSA Retail Limited was complete in all

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**Interpretation:** Section 10 of the IBC provides a mechanism for a corporate debtor to initiate

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**Application:** The court applied the provisions of Section 10 to the facts of the case and

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## Parties

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

## Timeline

- **2011-01-11 — Incorporation of GSA…**: GSA Retail Limited was incorporated…
- **2021-01-05 — Board Reso…**: Board Resolution authorizing Mr. Shambhu…

## Legal provisions

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

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