# In the matter of GUJARAT POSITRA STEEL COMPANY LIMITED

> NCLT judgment dated 2025-12-04. Citation: TCN-2025-NCLT-01782. Q West Infrastructure Private Limited, the Financial Creditor (FC), filed an application under…

- **Court:** NCLT
- **Order date:** 4 Dec 2025
- **Citation:** TCN-2025-NCLT-01782
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/gujarat-positra-steel-company-limited-db0738d3

## Summary

### Background

Q West Infrastructure Private Limited, the Financial Creditor (FC), filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), to initiate Corporate Insolvency Resolution Process (CIRP) against Gujarat Positra Steel Co. Limited, the Corporate Debtor (CD), due to a default on an Inter-Corporate Deposit Agreement (ICD Agreement).

## Facts

An Inter-Corporate Deposit Agreement (ICD Agreement) was executed between the Financial Creditor and Starwort Engineers Pvt. Ltd. on 10.11.2020 for Rs.11,00,00,000/- with 15% p.a. interest.

Gujarat Positra Steel Co. Limited (Corporate Debtor) became a Corporate Guarantor to the ICD Agreement via an addendum dated 12.11.2020.

The Borrower (Starwort Engineers Pvt. Ltd.) defaulted on the repayment of the ICD Amount.

The Financial Creditor initiated CIRP against the Borrower, which was admitted on 16.07.2024.

The Financial Creditor invoked the Corporate Guarantee against the Corporate Debtor on 21.10.2024 for Rs.19,55,89,041/-.

The Corporate Debtor failed to make payments despite the invocation of the guarantee and subsequent reminders.

…

## Issues and analysis

### Issue 1: Whether the invocation of the Corporate Guarantee after the admission of the Principal Borrower …

**Ratio:** A contract of guarantee is an independent and autonomous contract between the creditor

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**Reasoning:** The Hon'ble Supreme Court has held that the moratorium imposed under Section 14 of the

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**Interpretation:** The creditor is entitled to pursue insolvency proceedings against a corporate

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**Application:** The initiation of CIRP against the Borrower and the moratorium imposed on it do

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## Parties

- **Judges:** SAMEER…; NILESH S…
- **Appellants:** Q West Infrastruct…
- **Respondents:** Gujarat Positra…
- **Other parties:** Starwort Engineers…; NPV Insolvency…; +2 more
- **Advocates:** Akshay D…; Aniruddh…

## Timeline

- **2020-11-10 — ICD Agre…**: Inter-Corporate Deposit Agreement (ICD Agreement) was executed between the Financial…
- **2020-11-12 — Addendum to ICD…**: Gujarat Positra Steel Co. Limited (Corporate Debtor) became a Corporate Guarantor to the…

## 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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