# In the matter of Gupta Coal India Private Limited

> NCLT judgment dated 2024-03-21. Citation: TCN-2024-NCLT-01998. The application was filed by the liquidator of Gupta Coal India Private Limited, the Corporate…

- **Court:** NCLT
- **Order date:** 21 Mar 2024
- **Citation:** TCN-2024-NCLT-01998
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/gupta-coal-india-private-limited-51e58048

## Summary

### Background

The application was filed by the liquidator of Gupta Coal India Private Limited, the Corporate Debtor, seeking directions from the tribunal. The liquidator requested the tribunal to direct Respondents No. 1 to 5, who are lenders of GGRPL, to issue a No Objection Certificate (NOC) for the sale of assets and hand over the original ownership documents to the liquidator. The liquidator also sought a direction to the lenders of GGRPL, stating that they are forming part of the liquidation estate of the Corporate Debtor and must accept the proceeds of the liquidation estate. Additionally, the liquidator requested that Respondents No. 6 and 7 provide their consent for selling their portion of assets mortgaged by them in favor of Respondents No. 1 to 5, and to permit the

…

## Facts

The case involves Gupta Coal India Private Limited (Corporate Debtor) undergoing liquidation. The liquidator filed an application seeking directions for the sale of assets. Key facts include: 1. Assets of the Corporate Debtor were mortgaged to lenders (Respondents No. 1 to 5) to secure a loan availed by Gupta Global Resources Private Limited (GGRPL), a subsidiary. 2. A Corporate Guarantee was executed by the Corporate Debtor in favor of the lenders of GGRPL. 3. Some assets are jointly owned by the Corporate Debtor and its erstwhile promoters, Mr. Padmesh Gupta and Mrs. Anuradha Gupta (Respondents No. 6 and 7). 4. The liquidator sought directions for Respondents No. 1 to 5 to issue a No Objection Certificate (NOC) for the sale of assets. 5. Respondents No. 6 and 7

…

## Issues and analysis

### Issue 1: Whether the lenders of Gupta Global Resources Private Limited (GGRPL) should be considered part of …

**Ratio:** The principle derived from the Insolvency Law Committee reports and judicial precedents

…

**Reasoning:** The tribunal reasoned that the lenders, having relinquished their security interest,

…

**Interpretation:** This issue involves interpreting Section 53 of the Insolvency and Bankruptcy

…

**Application:** In this case, the lenders of GGRPL relinquished their security interest. The

…

## Parties

- **Judges:** V.G. B…; Prabhat…
- **Appellants:** Abhay Man…
- **Respondents:** Gupta Coal India…; State Bank of…

## Timeline

- **2019-01-01 — MA No. 3424…**: Miscellaneous Application…
- **2017-01-01 — CP (IB) No. 3…**: Corporate Insolvency Resolution Process…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

---

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/gupta-coal-india-private-limited-51e58048