# In the matter of Bahadur Ram Mallah vs. Assets Reconstruction Company (India) Ltd. and Anr.

> NCLAT judgment dated 2025-04-03. Citation: TCN-2025-NCLAT-00382. The appeal arises from an order dated 14.11.2024 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 3 Apr 2025
- **Citation:** TCN-2025-NCLAT-00382
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/bahadur-ram-mallah-vs-assets-reconstruction-company-778bd32e

## Summary

### Background

The appeal arises from an order dated 14.11.2024 passed by the Adjudicating Authority (National Company Law Tribunal, Kolkata Bench-I) in C.P.(IB) No. 1593/KB/2018, admitting the Corporate Debtor into CIRP under Section 7 of the IBC.

## Facts

ICICI Bank and IFCI Ltd. sanctioned loan facilities to Uniworth Textiles Ltd. ("UTL").

In 2004, SICA proceedings were initiated by the Corporate Debtor, and the account was declared NPA on 31.08.2007.

The loans of ICICI and IFCI were assigned to Assets Reconstruction Company (India) Ltd. ("ARC") on 31.03.2004 and 12.01.2007.

On 05.09.2014, ARC filed an Original Application before the DRT for SARFAESI proceedings.

On 19.09.2016, the Uniworth Group made a Global Offer of Settlement (GSA) to ARC for Rs 75 Cr, and paid Rs 51.10 Cr.

On 27.11.2018, ARC filed a Section 7 petition against the Corporate Debtor for Rs 205 Cr.

On 17.03.2020, the Adjudicating Authority dismissed the Section 7 application as time-barred, but this was set aside by the Tribunal on 10.07.2023.

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## Issues and analysis

### Issue 1: Whether the Section 7 application was maintainable based on the original financial debt, despite …

**Ratio:** The Section 7 application was based on the original financial debt extended by ICICI and

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**Reasoning:** The Tribunal relied on precedents like Priyal Kantilal supra, stating that the nature of

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**Interpretation:** Entering into a GSA does not change the nature of the original financial debt,

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**Application:** The Tribunal found that the Section 7 application was maintainable as it was

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Bahadur Ram…
- **Respondents:** Uniworth Textiles…; Assets Reconstruct…
- **Other parties:** ICICI…; IFCI…; +2 more
- **Advocates:** Narendra M…; Ankur…; +7 more

## Timeline

- **2004 — SICA Proceedings…**: Proceedings under Sick Industrial Companies Act, 1985 (SICA) was initiated by the…
- **2007-08-31 — Account Decla…**: The account of Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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