The Bombay High Court has allowed a group of banks, led by Punjab National Bank (PNB), to move a long-running legal case against Gili India Limited to the National Company Law Tribunal (NCLT). Gili India Limited is owned by Mehul Choksi, a citizen of Antigua and Barbuda.

Choksi, a diamond trader wanted by Indian authorities for serious charges like criminal conspiracy, cheating, and money laundering, has citizenship in Antigua and Barbuda through investment.

The court’s decision, rooted in the belief that reviving the company is essential for the benefit of its stakeholders, emphasizes a proactive approach to corporate recovery.

Justice Sharmila U Deshmukh highlighted that opting for revival under the Insolvency and Bankruptcy Code (IBC) would serve the greater good, preventing the “civil death” of the company, which could benefit creditors and stakeholders alike.

This ruling comes after Anchal Collections Ltd filed the initial petition for winding up in 2014, leading to the High Court’s order in 2018, which appointed an official liquidator.

The banks, which had previously extended around Rs 400 crore in working capital to Gili India Limited—part of the Gitanjali Group—alleged that the company was involved in extensive fraud already under investigation by the CBI.

Arguing for the transfer, advocates Payal Upadhyay and Anant Upadhyay noted that as secured creditors, they believed that proceeding under the IBC framework would facilitate better claim recovery. Furthermore, they pointed out that no irreversible actions have taken place since the winding-up order was issued.

Notably, the official liquidator did not oppose the transfer, signaling a consensus towards seeking a revival path.

The court has instructed that all pertinent documents be swiftly moved to the NCLT in Mumbai, paving the way for a potential restructuring and rehabilitation of Gili India Limited.