Gujarat Toolroom CIRP: NCLT Admits ₹26.21 Crore Claim

NCLT begins insolvency process

The National Company Law Tribunal, Ahmedabad Bench, has initiated the Corporate Insolvency Resolution Process, or CIRP, against Gujarat Toolroom Limited. The order was passed on September 30, 2026, after the Tribunal admitted a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016. Gujarat Toolroom is identified in the proceedings as the corporate debtor. The disclosure was made to the stock exchange on October 21, 2026, under the SEBI Listing Regulations.

The development formally places the company within the IBC resolution framework. CIRP is the statutory process used to examine creditor claims and seek a resolution for an eligible corporate debtor. The Tribunal's admission order also activates the related provisions of the Code, including a moratorium.

Naksh Steel filed the Section 9 petition

Naksh Steel Limited filed the application as the operational creditor. The matter is recorded as CP (IB) 158/NCLT/AHM/2026. The petition concerned unpaid operational dues claimed at ₹26,20,56,668, equivalent to ₹26.21 crore when stated in crore terms.

The material provided states that the default occurred on or after January 20, 2025. It also refers to a supply agreement dated December 16, 2024. The NCLT found that the debt was due and remained unpaid, and it recorded that no pre-existing dispute existed between the parties before the demand notice was issued.

Timeline of the Gujarat Toolroom case

The insolvency case progressed from the alleged payment default to the Tribunal's admission order and then the listed company's disclosure. While the order was dated September 30, a copy was received on October 1, according to Gujarat Toolroom's stock-exchange announcement. The company disclosed the development on October 21.

Interim Resolution Professional appointed

The NCLT appointed Iqbal Singh Gandhi as the Interim Resolution Professional, or IRP. The IRP will oversee the initial phase of the CIRP in accordance with the IBC and applicable regulations. His appointment was disclosed by Gujarat Toolroom in its filing.

The order directs the IRP to make a public announcement of the CIRP and invite claims from creditors. The IRP is also expected to take charge of the corporate debtor's assets and manage operations as a going concern during the process. These steps are part of the initial insolvency procedure following admission of a petition.

Moratorium takes effect under Section 14

The Tribunal imposed a moratorium under Section 14 of the IBC. It became effective from the date of the admission order, September 30, 2026. The moratorium continues until the CIRP is completed or a resolution plan is approved under the Code, as applicable.

A moratorium is a key protection within the CIRP framework because it puts the company under a structured legal process while claims are addressed. The supplied order summary confirms that the moratorium is linked to the initiation of CIRP. The announcement does not provide details of any resolution proposal or outcome at this stage.

Initial process cost direction

Naksh Steel, as the operational creditor, was directed to pay ₹2 lakh to the IRP within seven days towards initial CIRP costs. This amount equals ₹0.02 crore. The direction concerns initial expenses for conducting the insolvency process and is separate from the operational debt claimed in the petition.

The Tribunal's order therefore addresses both the commencement of the process and the immediate funding needed for its administration. Further claims from creditors will be subject to the claims invitation and verification process led by the IRP. The materials do not state the total value of claims that may ultimately be submitted.

Key figures from the order

Why the order matters for Gujarat Toolroom

The admission of the petition is a formal legal step rather than a final resolution of the company's financial position. It starts a time-bound insolvency process under the IBC and transfers the initial management of the process to the IRP. For shareholders and creditors, the immediate points disclosed are the moratorium, the appointment of the IRP, and the planned invitation for creditor claims.

The reported ₹26.21 crore claim is the specific operational debt behind the Section 9 application. The case material does not provide Gujarat Toolroom's broader debt position, financial results, or any eventual resolution terms. Those details cannot be inferred from the admission order alone.

What happens next

The next identified steps are a public announcement by the IRP, submission of claims by creditors, and collation of those claims. The CIRP will then proceed under the mechanism prescribed by the IBC. Any further update on a committee of creditors, a resolution plan, or completion of the process will depend on subsequent filings and legal actions.

For now, the September 30 NCLT order has set the insolvency resolution process in motion for Gujarat Toolroom. The October 21 BSE disclosure confirms the appointment of the IRP and informs investors of the CIRP admission. Future exchange announcements and NCLT-related disclosures will be relevant for tracking further developments.