Essel Group's Shirpur Gold Refinery, NCLT Initiates Insolvency Proceedings Following ₹92 Crore Default

Shirpur Gold Refinery Limited (SGRL), part of Subhash Chandra's Essel Group, has been admitted for corporate insolvency resolution by the Mumbai bench of the National Company Law Tribunal (NCLT), following an application from Prudent ARC. The insolvency proceedings were triggered by SGRL's default on dues amounting to ₹92 crore, which included a ₹65-crore loan and accrued interest. The creditor, Prudent ARC, secured its claim against pledged shares of SGRL in various companies. Ashish Vyas was appointed as the interim resolution professional (IRP) to oversee the process. SGRL contested the default date and validity of the loan agreement due to stamping issues, but NCLT ruled in favor of the creditor, citing the date of classification as a non-performing asset (NPA) as sufficient grounds for insolvency initiation under the Insolvency and Bankruptcy Code (IBC). The tribunal also imposed a moratorium on legal actions against SGRL. This decision underscores the complexities and legal interpretations involved in corporate insolvency proceedings.