The Mumbai bench of the National Company Law Tribunal (NCLT) has disposed of an insolvency petition filed by Canara Bank against Gannon Dunkerley & Co, as lenders are considering a settlement proposal from the construction and engineering firm.
The insolvency petition had been filed by Canara Bank, after Gannon Dunkerley defaulted on dues of more than Rs 43.26 crore. Subsequently, the company approached the consortium of eight lenders, led by State Bank of India, with the settlement proposal.
The division bench of HV Subba Rao and KK Singh, in its order last week, said Canara Bank could file an application for the restoration of the petition in case restructuring of the loans did not materialise.
Advocate Nausher Kohli, appearing for Gannon Dunkerley, informed the tribunal that the company had already submitted its proposal to Canara Bank and other lenders for restructuring the loan facilities. The matter is pending with the consortium of banks, he told the NCLT.
Advocates AK Mishra and Umar F Azam, appearing for the lenders, informed the tribunal that it was not fair to once again ask for an adjournment on the same ground and therefore requested the bench either to adjourn the matter sine die or to dispose of the petition by granting liberty to the bank to file restoration application in case the compromise talks failed.
The tribunal, while allowing the submission of the lenders, disposed of the case.
Founded in 1924, Gannon Dunkerley has executed several infrastructure projects including manufacturing plants, cement and power plants and bridges and highways. According to the company’s website, it has also completed many irrigation and hydroelectric projects and pioneered precast RCC construction in the country.
As per latest data from the Insolvency & Bankruptcy Board of India, 5,636 companies had been admitted for the corporate insolvency resolution process till the end of June 2022 and 3,637 of these had been closed. Manufacturing (43%), real estate (17%) and retail trade (12%) are the sectors that have seen the highest number of companies facing liquidation in the last five years.
