The Adjudicating Authority's role is limited to verifying defaults under IBC without compelling settlement negotiations.

And

I.A. (IB) No. 729/KB/2025

In

Company Petition (IB) No. 37/KB/2024

Applications under Section 60 (5) read with Section 65 of the

Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the

National Company Law Tribunal Rules, 2016.

IN THE MATTER OF:

CANARA BANK & ORS. … Financial Creditors.

Versus

GUPTA POWER INFRASTRUCTURE LIMITED

… Corporate Debtor.

And

IN THE MATTER OF:

Gupta Power Infrastructure Limited

… Applicant

Versus

Canara Bank & Ors.

… Respondents.

Date of Pronouncement: September 26, 2025.

CORAM:

SMT. BIDISHA BANERJEE, HON’BLE MEMBER (JUDICIAL)

CMDE. SIDDHARTH MISHRA, HON’BLE MEMBER (TECHNICAL)

APPEARANCE:

For the Financial Creditor: Mr. Ratnanko Banerji, Sr. Adv.

Mr. Supriyo Mahapatra, Adv.

Mr. Kaushik Dey, Adv.

Ms. K. Rahman, Adv.

Mr. N. Pandey, Adv.

For the Corporate Debtor: Mr. Joy Saha, Sr. Adv.

Mr. Shaunak Mitra, Adv.

Mr. Rishav Banerjee, Adv.

Mr. Supriyo Banerjee, Adv.

Mr. Tanay Agarwal, Adv.

I.A. (IB) No.729/KB/2025 In Company Petition (IB) NO. 37/KB/2024

ORDER

Per Bidisha Banerjee, Member (Judicial):

1. Heard Ld. Sr. Counsels/ Ld. Counsels for the parties.

2. By way of this two applications, the applicant – Gupta Powers, the corporate debtor herein has sought for a necessary direction upon the consortium of banks who are the financial creditors in the Section 7 petition to reconsider the restructuring plan dated 10.06.2024 or to give Gupta power a fair opportunity to submit a revise restructuring plan and to disclose all the documents pertaining to convening a joint lenders meetings dated 28.04.2025 and till that the Section 7 proceedings be kept in abeyance.

3. Mr. Joy Saha, Learned Senior Counsel appearing on behalf of the applicant, would submit that the corporate debtor be way of an email issued on 12.06.2025, addressing all the members of the consortium of banks, sent a comprehensive restructuring plan dated 10.06.2025 towards the outstanding working capital limits of Gupta Power. However, the said plan was rejected by way of a letter issued on 21.06.2025 by the financial creditors. It is also submitted that the corporate debtor submitted a revised OTS proposal on 24.07.2025 for the settlement; however, the same has not been considered by the financial creditor, and the corporate debtor has never been informed of the finality of such OTS proposal.

4. By referring to the Judgement of Hon’ble Apex Court in the matter of M/s Invent Asset Securitisation and Reconstruction Pvt. Ltd. v. M/s Girnar Fibres Limited in Civil Appeal No. 3033 of I.A. (IB) No.729/KB/2025 In Company Petition (IB) NO. 37/KB/2024

2022 Judgment dated 25.04.2022 and Shamji Optima Private Limited v. Tridhatu Aranya Develops LLP judgment dated 04.05.2022 passed by the Hon’ble NCLAT, Ld. Sr. Counsel Mr. Saha would submit that the instant Section 7 petition is speculative, malicious, and vexatious and deserves to be dismissed as the same has been preferred for the purpose of recovery, which is contrary to the objective of the Code.

5. Per Contra, Mr. Ratnanko Banerji, appearing as the financial creditors, would submit that the Section 7 proceeding is not for the settlement of a dispute, and a Section 7 petition should not venture to settle the dispute, and the parties cannot be compelled to settle the dispute as the financial creditor has commercial wisdom with regard to their claim. Accordingly, he would submit that the prayers advanced by the corporate debtor herein seeking directions from this Adjudicating Authority are beyond its purview and thus, the same are liable to be dismissed.

6. We note that in E.S. Krishnamurthy v. M/s. Bharathi Hi-tech Builders Ltd. reported in (2022) 3 SCC 161, the Hon’ble Apex Court has held that:

“The Adjudicating Authority has clearly acted outside the terms of its jurisdiction under Section 7(5) of the IBC. The Adjudicating Authority is empowered only to verify whether a default has occurred or if a default has not occurred. Based upon its decision, the Adjudicating Authority must then either admit or reject an application respectively. The