# In the matter of KALLAM TEXTILES LIMITED

> NCLT judgment dated 2026-04-06. Citation: TCN-2026-NCLT-00265. Union Bank of India filed a petition under Section 7 of the IBC, 2016, seeking initiation of…

- **Court:** NCLT
- **Order date:** 6 Apr 2026
- **Citation:** TCN-2026-NCLT-00265
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-amaravati/kallam-textiles-limited-9355ef0a

## Summary

### Background

Union Bank of India filed a petition under Section 7 of the IBC, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Kallam Textiles Ltd. for defaulting on a debt of Rs. 2,10,49,16,990.77 as on 31.10.2025.

## Facts

Union Bank of India (Financial Creditor) filed a petition under Section 7 of the IBC, 2016 against Kallam Textiles Ltd. (Corporate Debtor).

The Corporate Debtor defaulted on a debt of Rs. 2,10,49,16,990.77 as on 31.10.2025.

The Financial Creditor had sanctioned various credit facilities to the Corporate Debtor, who executed security documents.

The Corporate Debtor's loan accounts slipped to NPA category on 29.06.2023.

The Financial Creditor issued a statutory demand notice dated 11.09.2024 under Section 13(2) of SARFAESI.

The Financial Creditor also filed an OA before the Debt Recovery Tribunal Visakhapatnam for recovery of the debt.

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## Issues and analysis

### Issue 1: Whether the present Petition is filed …

**Ratio:** The petition was filed

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**Reasoning:** The dates of default of various accounts of the Corporate Debtor are from 29.06.2023 to

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**Interpretation:** The Adjudicating Authority considered the dates of default and the

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**Application:** The facts of the case regarding the dates of default and acknowledgment of debt

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## Parties

- **Judges:** UMESH KUMAR…; KISHORE VEMULAPALL…
- **Appellants:** Union Bank of…
- **Respondents:** Kallam Textiles…
- **Other parties:** Amara…; Rajesh Ch…
- **Advocates:** Peri Rama K…; P. Aditya Harsha…

## Timeline

- **29.12.2025 — E-filing of P…**: The present Petition has…
- **30.12.2025 — Physical Filing of…**: The Petition was physically…

## 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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