GCCL Infra and Projects is first case under pre-packaged insolvency process

GCCL Infrastructure and Projects Limited becomes the first corporate debtor against which the Pre-Packaged Insolvency Resolution Process would initiate under Section 54A of the Insolvency and Bankruptcy Code, 2016.

The Corporate Debtor is a Micro, Small & Medium Enterprises (MSME), and is eligible to file this application as per the Section 54A (1) of IBC. It is engaged in turnkey constructions for commercial and residential real estate development. It was incorporated in 1994 and is based in Ahmedabad, India.

The total debt amount payable by the corporate debtor to its various creditors is Rs 54.16 lakh and the dare of default was 31 December 2020.

A Special Resolution’ by the Members of the Corporate Debtor to initiate the Pre-Packaged Insolvency Resolution Process (PPIRP) under Section 5aA(2)(g) of the Code was passed, and the Financial Creditor approved the decision of the directors to file this application as contemplated under Section 54A(3) of the Code.

The Financial Creditor approved the appointment of Parag Sheth as the resolution professional.

The applicant has also produced the audited financial statements of the company for the year 2019-20A and 202O-21. List of the assets and liabilities of the corporate debtor, names and amount of the debt of all Financial Creditors and Operational Creditors and names of all the Directors and Members of the Corporate Debtor have also been produced by the applicant.

The Ahmedabad bench of the NCLT admitted the application filed by GCCL Infrastructure and Projects to initiate Pre-Packaged Insolvency Resolution Process.

The NCLT found GCCL fulfilling all the conditions for initiation of pre-packaged insolvency process.

Under Section 54F(5), the personnel of the Corporate Debtor will extend all assistance and cooperation to RP. In case of non-cooperation, the RP can approach this Adjudicating Authority under Section L9(2) of the Code. The management of the Corporate Debtor will remain vested with the Board of Directors of the Corporate Debtor as per the provisions of Section 54H subject to action under Section 54J of the Code, if, any. The Board of Directors will discharge their duties as specified under Section 54H(b) and Section 54H(c) of the Code.

Also Read: Highlights of pre-pack scheme for MSMEs