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NCLT Hyderabad Initiates Insolvency Process Against Gayatri Projects Ltd., A Gayatri Group Company

Pallavi Mishra
24 Nov 2022 12:30 PM GMT
NCLT Hyderabad  Initiates Insolvency Process Against Gayatri Projects Ltd., A Gayatri Group Company
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The National Company Law Tribunal ("NCLT"), Hyderabad Bench, comprising of Dr. Venkata Ramakrishna Badarinath Nandula, (Judicial Member) and Mr. Satya Ranjan Prasad (Technical Member), while adjudicating in a petition filed in State Bank of India v M/s Gayatri Projects Limited, has initiated Corporate Insolvency Resolution Process (CIRP) against Gayatri Projects Ltd., which is a part of...

The National Company Law Tribunal ("NCLT"), Hyderabad Bench, comprising of Dr. Venkata Ramakrishna Badarinath Nandula, (Judicial Member) and Mr. Satya Ranjan Prasad (Technical Member), while adjudicating in a petition filed in State Bank of India v M/s Gayatri Projects Limited, has initiated Corporate Insolvency Resolution Process (CIRP) against Gayatri Projects Ltd., which is a part of the Gayatri Group. Mr. Sai Ramesh Kanuparthi has been appointed as the Interim Resolution Professional (IRP).

Background Facts

Gayatri Projects Ltd. ("Corporate Debtor") is the flagship company of the Gayatri Group that has interests in infrastructure, power, hospitality, real estate and industry. The Corporate Debtor is engaged in the construction of major Civil Works including Concrete/Masonry Dams, Earth Filling Dams, National Highways, Bridges, Canals, Aqueducts, Ports, etc. across India.

The State Bank of India ("Financial Creditor") had provided various Term Loans, Short Term Loans, Equipment Loans, Demand Loan, ECB Loan and working capital facilities, both fund based and non-fund based, to the Corporate Debtor. The account of the Corporate Debtor was classified as Non Performing Asset on 30.04.2022. Subsequently, an amount of Rs. 242,33,00,269/- became due and payable to the Financial Creditor by the Corporate Debtor on 30.09.2022.

The Financial Creditor filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("IBC"), seeking initiation of Corporate Insolvency Resolution Process ("CIRP") against the Corporate Debtor, over a default of Rs. 242,33,00,269/-. The Adjudicating Authority issued notice to the Corporate Debtor and the same was duly delivered. However, the Corporate Debtor did not enter appearance. Therefore, holding service to be sufficient, the Adjudicating Authority set the Corporate Debtor Ex-Parte on 04.11.2022.

Decision Of NCLT

The Bench observed that the Corporate Debtor had not made out any ground against admission of the Section 7 petition. Further, Section 7(3) of IBC was complied with by the Financial Creditor. There was a debt and default in existence and the petition was complete in all respects.

The Bench admitted the petition under Section 7 and initiated CIRP against the Corporate Debtor. Mr. Sai Ramesh Kanuparthi has been appointed as the Interim Resolution Professional (IRP).

Case Title: State Bank of India v M/s Gayatri Projects Limited

Case No.: CP(IB) No. 308/07/HDB/2022

Counsel For the Financial Creditor: Mr. P. Ravi Charan and Ms. Niharika Agarwal, Advocates

Click Here To Read/Download Order

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