GTL Ltd Closes Chapter with Canara Bank, Settles All Outstanding Dues and Disputes

GTL Ltd has officially announced the full and final settlement of all dues and disputes with Canara Bank, marking a significant resolution in a long-standing financial standoff. The development, disclosed on July 2, 2025, brings closure to a contentious chapter that included insolvency proceedings, debt restructuring, and legal appeals.

 

The dispute stemmed from a ₹534 crore loan default, which led Canara Bank to initiate insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code. However, the National Company Law Tribunal (NCLT) had previously dismissed the petition, citing GTL’s financial viability and the majority lenders’ preference for recovery through the SARFAESI route.

 

Key Highlights:

 

Settlement Scope: Covers all outstanding dues, legal claims, and disputes between GTL Ltd and Canara Bank.

Background: Canara Bank had less than 5% secured interest; over 90% of lenders had opted for a one-time settlement via SARFAESI.

Tribunal History: NCLT and NCLAT had earlier ruled in favor of GTL, citing its ability to repay and ongoing recovery from other debtors.

Financial Turnaround: GTL has repaid over ₹2,700 crore since its debt restructuring, signaling improved cash flows and operational stability.

Strategic Impact: The settlement clears a major overhang on GTL’s balance sheet and may improve its credit profile and investor sentiment.

 

This resolution not only strengthens GTL’s financial standing but also sets a precedent for collaborative debt resolution outside the insolvency framework.

 

Sources: Legal Era, Indian Kanoon, CaseMine