A closed Canara Bank ATM in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Canara Bank Files Insolvency Plea Against GTL Infrastructure

State-run Canara Bank has filed an application for initiation of insolvency proceedings against GTL Infrastructure Ltd. over the alleged default to the tune of Rs 541.49 crore, according to an exchange filing by the telecom infrastructure company.

The company, however, denied any such default, and said that the bank’s claims were "on illegal and unjustifiable grounds". According to the filing, the company claimed that its dues to the bank stood at Rs 275.48 crore as on March 31. The company, according to the filing, said it has initiated legal action before “relevant judicial authorities”.

GTL Infrastructure obtained a status quo against the Corporate Insolvency Resolution Process proceedings from the appropriate judicial forum. Subsequently, the insolvency process has been stayed pending the outcome of the aforementioned proceedings, the filing said.