NewsCorporate ActionsNCLT Approves Withdrawal of Insolvency Proceedings Against Gayatri ProjectsNCLT Approves Withdrawal of Insolvency Proceedings Against Gayatri Projects
The National Company Law Tribunal (NCLT) Hyderabad bench has approved the withdrawal of Corporate Insolvency Resolution Process (CIRP) against Gayatri Projects Limited. State Bank of India, the original applicant, filed the withdrawal application under Section 12A of the Insolvency and Bankruptcy Code. The Committee of Creditors approved the withdrawal with over 90% voting share. The CIRP process is now closed, and the Resolution Professional has been discharged. However, the NCLT has retained a provision for potential revival of the proceedings in case of any violation of settlement terms.
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In a significant development for Gayatri Projects Limited , the National Company Law Tribunal (NCLT) Hyderabad bench has approved the withdrawal of Corporate Insolvency Resolution Process (CIRP) against the company. This decision marks a turning point for the infrastructure firm, which had been undergoing insolvency proceedings since November 2022.
Key Highlights
- The NCLT Hyderabad bench allowed the withdrawal of the CIRP petition against Gayatri Projects Limited.
- The withdrawal application was filed under Section 12A of the Insolvency and Bankruptcy Code by State Bank of India, the original applicant.
- The Committee of Creditors (CoC) approved the withdrawal with more than 90% of the voting share, meeting the statutory requirements.
- The CIRP process against Gayatri Projects now stands closed, and the Resolution Professional has been discharged.
Background and Implications
Gayatri Projects Limited, a prominent player in the infrastructure sector, had been facing financial challenges that led to the initiation of insolvency proceedings by State Bank of India in November 2022. The recent NCLT order effectively closes these proceedings, potentially offering the company a fresh start.
Company's Response
In an official intimation to the stock exchanges, Gayatri Projects Limited confirmed the NCLT's decision. The company stated, "This is to inform that vide order in IA(IBC)/1475/2025, the Hon'ble NCLT, Hyderabad bench has allowed withdrawal of Company Petition No. CP(IB) 308/07/HDB/2022 filed under Section 7 of the Insolvency and Bankruptcy Code 2016 by State Bank of India, the original applicant."
Future Outlook
While the withdrawal of insolvency proceedings is a positive development for Gayatri Projects, it's important to note that the NCLT has retained a provision for potential revival of the proceedings. The tribunal's order specifies that the applicant (State Bank of India) has the liberty to revive the proceedings or petition in case of any violation of the settlement terms and conditions.
This development could potentially pave the way for Gayatri Projects to restructure its operations and finances, aiming for a turnaround in its business performance. Stakeholders will likely be watching closely to see how the company leverages this opportunity to strengthen its financial position and operational capabilities in the coming months.
As the infrastructure sector continues to play a crucial role in India's economic growth, the revival of companies like Gayatri Projects could have broader implications for the industry and its various stakeholders.
