Union Bank of India, a scheduled bank, filed a petition against Ashoka Maltiyarn Mills Ltd. under Section 7 of the IBC, 2016, claiming the corporate debtor defaulted on its debt. Ashoka Maltiyarn Mills Ltd. had availed various credit facilities from the bank and provided security, including personal guarantees and hypothecation deeds. The corporate debtor failed to adhere to the terms of availment and defaulted on payments, leading to the account being declared a Non-Performing Asset (NPA) on 2015-06-30. A notice under Section 13(2) of the SARFAESI Act was issued. The outstanding liability as of 2017-08-31 was Rs. 25,93,84,046.73. The bank also filed a suit for recovery before DRT-1, Kolkata, for Rs. 21,80,44,846. The corporate debtor failed to put up a defense despite

Union Bank of India, a scheduled bank, filed a petition against Ashoka Maltiyarn Mills Ltd. under Section 7 of the IBC, 2016, claiming the corporate debtor defaulted on its debt. Ashoka Maltiyarn Mills Ltd. had availed various credit facilities from the bank and provided security, including personal guarantees and hypothecation deeds. The corporate debtor failed to adhere to the terms of availment and defaulted on payments, leading to the account being declared a Non-Performing Asset (NPA) on 2015-06-30. A notice under Section 13(2) of the SARFAESI Act was issued. The outstanding liability as of 2017-08-31 was Rs. 25,93,84,046.73. The bank also filed a suit for recovery before DRT-1, Kolkata, for Rs. 21,80,44,846. The corporate debtor failed to put up a defense despite