Mumbai-based Guruashish Construction admitted for insolvency

MUMBAI: The National Company Law Tribunal ( NCLT) has admitted Mumbai-based Guruashish Construction for insolvency proceedings as the company has failed to repay a Rs 250 crore debt with the lender - Union Bank of India hoping to recover the soured loan.

“It is evident that the corporate debtor defaulted in repaying the loan availed and also placed the name of insolvency resolution professional to act as interim resolution professional, having this Bench noticed that default has occurred,” said B S V Prakashkumar – member (judicial) and V Nallasenapathy – member (technical) in an order from NCLT Mumbai bench.

“The petition is admitted.”

The bench has appointed Rajendra Bhutta, a chartered accountant from Mumbai as the interim resolution professional to carry the day-to-day functions in running the company. He will operate for 30 days but may discontinue if the committee of creditors (COS) appoints a different resolution professional after one month.

Mumbai-based Guruashish Construction was incorporated in 2000 as a privately-held company. Union Bank of India earlier sought the corporate insolvency process against the company.

If a resolution plan is found within 270 days, the company will head for liquidation.

Earlier in April, the company made an attempt to settle the outstanding dues through one-time settlement as it sent a letter to the lender.
But, Union Bank of India declined it.