# In the matter of KALLAM BROTHERS COTTONS PRIVATE LIMITED

> NCLT judgment dated 2025-08-25. Citation: TCN-2025-NCLT-01309. Axis Bank Ltd filed an application under Section 7 of the IBC, 2016 for initiating Corporate…

- **Court:** NCLT
- **Order date:** 25 Aug 2025
- **Citation:** TCN-2025-NCLT-01309
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-amaravati/kallam-brothers-cottons-private-limited-dfb3dc3b

## Summary

### Background

Axis Bank Ltd filed an application under Section 7 of the IBC, 2016 for initiating Corporate Insolvency Resolution Process (CIRP) against M/s. Kallam Brothers Cottons Pvt Ltd due to a default amount of Rs.72,85,85,048.80.

## Facts

Axis Bank Ltd filed an application under Section 7 of the IBC, 2016, seeking initiation of CIRP against M/s. Kallam Brothers Cottons Pvt Ltd.

The Corporate Debtor defaulted on a debt of Rs.72,85,85,048.80.

The Corporate Debtor had availed various credit facilities, including Term Loans, Working Capital Loans, and Emergency Credit Line Guarantee Scheme (ECLGS) loans.

The account was classified as Non-Performing Asset (NPA) on 21.05.2024.

The Financial Creditor served notice to the Corporate Debtor, but it was returned undelivered.

The Financial Creditor then served notice through substituted service by publication in newspapers.

The Adjudicating Authority appointed Mr. Madhu Sudhanarao Mallipaddi as the Interim Resolution Professional (IRP).

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 …

**Ratio:** An application under Section 7 of the IBC would not be barred by limitation if it had

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**Reasoning:** The Adjudicating Authority relied on the judgment of the Hon'ble Supreme Court in Dena

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**Interpretation:** The period of limitation for initiating proceedings would expire on 21.02.2027.

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**Application:** Since the present Petition has been filed on 26.11.2024, the same is well

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## Parties

- **Judges:** UMESH KUMAR…; KISHORE VEMULAPALL…
- **Appellants:** Axis Ban…
- **Respondents:** M/s.Kallam…
- **Other parties:** Amara…; Madhu Sudhanarao…; +1 more
- **Advocates:** V.V. Siva…

## Timeline

- **2024-11-26 — Application…**: Axis Bank Ltd filed the…
- **2025-02-04 — First He…**: The matter was first listed for hearing, and the Financial Creditor was directed to serve…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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