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Judgment
This appeal is filed against an impugned order dated 01.09.2026 wherein on the applications i.e. I.A No. 1543 of 2025 & 1367 of 2026, an order was passed to file reply etc and consequently in I.A No. 157 of 2026, the bank guarantee given by the Appellant herein was forfeited.
It is the submission of the Ld. Sr. Counsel for the Appellant they are the Successful Resolution Applicant (SRA) in the CIRP of M/s GPT Steel Industries Ltd.
It is the submission of the Ld. Sr. Counsel for the Appellant the information given in the Information Memorandum was wholly incorrect as expressly stated the Corporate Debtor holds leasehold rights for 99 years qua plot no. 301 and nos. 338-341, Mithi Rohar, Bhuj, Gujarat, admeasuring 1,50,240 sq. mts. and 40,432 sq. mts. respectively.
It is submitted the plan as was submitted by the SRA was only on the basis of mis-information as stated above in the Information Memorandum.
It is submitted even in the reply dated 24.04.2026 filed in GIDC appeal stated the lease deed dated 20.12.2005 was executed between the GIDC and the Corporate Debtor in respect of the land parcels for plot no. 338 to 341 (supra) being leased to the Corporate Debtor for a period of 99 years.
Further, the valuation report filed in the present case also treated both the land parcels as leaseholds properties of the Corporate Debtor and even the resolution plan was approved on the basis of mis-representation.
Ld. Sr. Counsel for the Appellant has also shown us the valuation report wherein the basis of valuation of the Corporate Debtor was the leasehold rights over plots no. 301, 338-341.
It is the submission of the Ld. Sr. Counsel for the Appellant an additional affidavit dated 10.08.2026 was filed by GIDC in CA (AT) (Ins) No. 191 of 2026 wherein the Appellant came to know no lease deed existed qua plot nos. 338-341 (Supra) and the possession was held by the Corporate Debtor was only under a license agreement dated 20.12.2005. The clauses of the license agreement were also read to us.
It is thus submitted immediately thereafter the Appellant moved an application i.e. I.A No. 1367 of 2026 to stay the implementation of the resolution plan till the status of the assets of the Corporate Debtor is not cleared by the Respondents. It is submitted keeping this application pending, the direction given to forfeit the bank guarantee was wholly wrong.
On the other hand, the Ld. Counsel for the Respondent argues there is already an application i.e. I.A no. 157 of 2026 pending before the Ld. NCLT wherein prayer made is issuance of fresh Form G and taking consequential steps to complete the CIRP within the specific time period if the Appellant is found unwilling or incapable of implementing the resolution plan, besides other prayers.
It is the submission of the Ld. Sr. Counsel for the Appellant since he has challenged the plan approval on the basis of wrong information being supplied to SRA in the Information Memorandum, the plan needs to go and hence his I.A No. 1367 of 2026 be decided at the earliest prior to taking further steps in the CIRP process.
Considering the submissions and nature of objections and also the law as is propounded in the case of Kanwar Raj Bhagat v. Gujarat Hydrocarbons and Power SEZ Ltd. & Ors., CA (AT) (Ins) No. 1557 of 2023, it would be appropriate if the applications i.e I.A No. 1367 of 2026 and 1543 of 2025 be decided first prior to issuance of further directions in the CIRP. All the rights and contentions of the parties are kept open before the Ld. NCLT, including the one by the RP viz the Appellant was always aware of the license agreement dated 20.12.2005.
Thus, considering the submissions, we dispose of this appeal by requesting the Ld. NCLT to decide the issues raised by the parties afresh prior to the decision in I.A No. 157 of 2026 in a time bound manner, preferably within two months. The appeal stands disposed of in terms of the above. In case, the Ld. NCLT agree to the submissions made by the Appellant, then the Appellant shall be at liberty to seek appropriate remedy against forfeiture. Pending I.As No. 6912, 6913 & 6914 of 2026 are also disposed of.