Key Quantitative Figures

  • Total Financial Debt in Default: ₹240,46,84,989 (Rupees Two Hundred Forty Crores Forty-Six Lakhs Eighty-Four Thousand Nine Hundred Eighty-Nine)
  • Date of Default: 24th October 2005
  • IRP Appointment Fee: ₹2,00,000 (Rupees Two Lakh) to be paid to the Interim Resolution Professional
  • Paid-up Share Capital: ₹106,72,73,170
  • Nominal Share Capital: ₹122,00,00,000

Dates of Action

  • Board Resolution Date: 8th November 2023
  • Shareholder Resolution Date: 15th December 2023
  • Hearing Date: 7th August 2026 at 10:30 AM
  • Order Date: 7th August 2026

Parties Involved

  • Petitioner/Corporate Debtor: Gangotri Textiles Limited, represented by Managing Director Manoj kumar Tibrewal
  • Proposed Interim Resolution Professional: Mr. G. Gunasekaran (Registration No. IBBI/IPA-001/IP-P00681/2017-2018/11178)
  • Financial Creditors: State Bank of India (Consortium leader), IDBI Bank, and other consortium members including State Bank of Hyderabad, State Bank of Mysore, State Bank of Travancore, Canara Bank, United Bank of India, Corporation Bank (now JM Finance ARC Ltd), and Syndicate Bank
  • Legal Representatives: Mr. Pranav Gopala Krishnan (for Applicant), Mr. K. Chandrasekaran and Mr. K. Muthukumar (for State Bank of India)
  • Tribunal Members: Shri. Jyoti Kumar Tripathi (Member Judicial), Shri. Ravichandran Ramasamy (Member Technical)

Statutory Dues and Liabilities

The Corporate Debtor disclosed significant statutory dues totaling approximately ₹70.19 crore:

1. Joint Director General of Foreign Trade, Coimbatore: ₹55,90,28,760 for non-fulfillment of export obligation on 45 licenses

2. Assistant Commissioner of Customs, Chennai: ₹1,53,77,000 for non-fulfillment of export obligation on 6 licenses

3. Assistant Commissioner of Income Tax: ₹7,30,48,152 penalty u/s 271(1)(c) for AY 2012-13 (matter sub-judice in Supreme Court)

4. Deputy Commissioner of Income Tax TDS Circle: ₹45,69,649 for TDS default

5. Maharashtra Sales Tax Department: ₹32,46,000 for reversal of input VAT credit for AY 2005-06 and 2006-07

6. National Stock Exchange Penalties:

  • ₹34,73,073 for belated submission of unaudited results (Q2 FY16)
  • ₹8,03,073 for belated submission of annual results (FY15)
  • ₹4,18,900 for non-compliance with Regulation 17(1) of SEBI LODR
  • ₹9,18,210 in arrears of annual listing fees

7. Bombay Stock Exchange Penalties:

  • ₹1,89,900 for non-compliance with Regulation 17(1) of SEBI LODR
  • ₹9,18,210 in arrears of annual listing fees

Financial Position

The company's financial position as per balance sheet (provisional as of 19.09.2025):

  • Total Equity and Liabilities: ₹15,20,03,041
  • Total Assets: ₹15,20,03,041
  • Non-Current Assets: ₹5,19,42,526 (including investments of ₹15,00,52,000)
  • Current Assets: ₹60,815
  • Significant Liabilities: Bankers' loan liability of ₹240,46,84,989

Background and Rationale

The Corporate Debtor availed various financial facilities from multiple banks but defaulted due to adverse financial conditions and severe cash flow constraints. Lenders had already sold the company's entire assets including nine manufacturing units, five wind mills, and three vacant lands during 2015 and adjusted proceeds against loan dues. The company has no source of income/revenue since then, with day-to-day administrative expenses met by borrowing funds from the Managing Director.

Opposition by State Bank of India

SBI opposed the application, stating:

  • Outstanding dues amount to ₹475.72 crores as of 30th April 2026
  • Recovery proceedings are already pending before Debt Recovery Tribunal, Chennai
  • Secured properties were sold under SARFAESI Act and proceeds appropriated
  • Alleged the application is a mala fide attempt to misuse IBC provisions to obtain moratorium benefits and obstruct recovery proceedings

Tribunal Findings and Order

The Tribunal found:

  • Application complete and compliant with Section 10 requirements
  • Existence of financial debt and default established (₹240.47 crore)
  • Corporate Debtor not hit by disqualifications under Section 11 of IBC
  • Pendency of recovery proceedings does not bar initiation of CIRP
  • No evidence of fraudulent or malicious intent under Section 65

Order Details

  • Application CP(IBC)/310(CHE)/2025 admitted
  • Corporate Insolvency Resolution Process (CIRP) commenced
  • Mr. G. Gunasekaran appointed as Interim Resolution Professional
  • Moratorium declared under Section 14 of IBC with immediate effect
  • Board of Directors superseded
  • IRP directed to take necessary steps under Sections 15, 17, 18 of IBC
  • Registry to communicate order to IBBI and Registrar of Companies