In the matter of GILCO STEELS LIMITED

Under Sections: 7 of IBC 2016 Order delivered on 25.08.2026 CORAM: SHRI. K.K. SINGH SHRI. ASHOK KUMAR BHARDWAJ HON’BLE MEMBER (T) HON’BLE MEMBER (J) PRESENT:- For the Petitioner : Mr. Naren Pratap, Advocate For the Respondent : Ms. Divya Sharma, Advocate ORDER The present Petition has been filed under Section 7 of the IBC 2016, seeking initiation of the CIRP against Gilco Steel Limited. The amount of debt claimed in Part IV of the application is stated to be Rs. 58,59,98,599.12/-, which is substantially above the prescribed threshold limit of Rs. 1 crore under Section 4 of the IBC. Accordingly, the application satisfies the minimum pecuniary threshold prescribed for initiation of CIRP. Part IV of the Application reads thus:

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The Applicant has placed on record the statement of account evidencing the disbursement of the debt amount and the outstanding liability of the Corporate

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Debtor. The Applicant has also demonstrated the occurrence of default in repayment of the debt. Further, the Applicant has placed on record the other relevant documents pertaining to the sanction and availing of the financial facilities by the Corporate Debtor, along with other supporting documents. The details of the documents relied upon by the Applicant are given in the Part V of the application. The Applicant has placed on record a copy of the CIBIL Report dated 20.07.2024 as Annexure-24 of the Application. A copy of the demand notice dated 11.11.2013 under Section 13(2) of the SAREFASI, 2002 is also available on record as Annexure A-23 which reads as follows:

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The demand notice establishes the occurrence of default in respect of the debt claimed by the Applicant. Significantly, the Corporate Debtor, vide its settlement proposals dated 27.11.2022 and 23.01.2023, placed on record as Annexure A- 25 offered to settle the outstanding dues. The OTS offer dated 23.01.2023 acknowledge the debt and the liability of the Corporate Debtor towards the Applicant. Thus, the requirement of Section 7 (5) (a) of the IBC 2016 stands satisfied. The Applicant has also placed on record the written consent of the proposed IP for being appointed as the IRP as Annexure A-4 to the Application. The said affirmation reads as follows:

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As can be seen from the petition there is no valid AFA, attached. Nevertheless, it would be appropriate to direct the IP to place on record a fresh AFA. The proposed IP shall place on record a fresh AFA for his appointment as the IRP.

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As the financial debt remains due and payable and the default in repayment thereof has occurred, we are left with no option but to admit the present petition and initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. Petition is Accordingly Admitted.

As a consequence of the petition C.P. (IB) 271/Chd/Chd/2024 being admitted in terms of Section 7 of the Code, moratorium as envisaged under the provisions of Section 14(1) (a to d) of the Code, shall follow in relation to the Respondent/(CD).

As proposed by the Petitioner, this Bench appoints Mr. Jalesh Kumar Grover as IP having Registration No. IBBI/IPA-001/IP-P00200/2017-2018/10390, Email id: jk.grover27@gmail.com. He has filed his written communication, as per the requirement of Rule 9(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The Form 2 furnished by the IP has been placed on record as enclosure to the petition. In terms of the declaration given by the IP, no disciplinary proceedings are pending against him. Mr. Jalesh Kumar Grover, IP has made also further disclosures as per the requirement of the IBBI Regulations.

The Applicant is directed to deposit Rs.2,00,000/- (Two Lakh only) with the IRP to meet the immediate expenses. The amount, however, will be subject to adjustment by the Committee of Creditors as accounted for by Interim Resolution Professional and shall be paid back to the Applicant.

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The IRP would act in terms of the provisions of Sections 13, 15, 17, 18, 20 and 21 of IBC, 2016 read with Regulations thereunder.

In terms of Section 7(7) of the Code, the Registry/Court Officer is hereby directed to communicate a copy of the order to the Applicant/FC, the Respondent/CD, the IRP and the Registrar of Companies, Punjab and Chandigarh, by Speed Post and by email, at the earliest but not later than seven days from today. The Registrar of Companies shall update his website by updating the status of the Respondent/CD and specific mention regarding admission of this petition must be notified.

The Registry/Court Officer is further directed to send a copy of this order to the Insolvency and Bankruptcy Board of India for their record.

Sd/- Sd/- (K.K. SINGH) (ASHOK KUMAR BHARDWAJ) MEMBER (TECHNICAL) MEMBER (JUDICIAL)

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