# UCO Bank vs. RMD Hotels & Resorts Private Limited

> NCLT judgment dated 2026-08-21. Citation: TCN-2026-NCLT-00874. UCO Bank (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 21 Aug 2026
- **Citation:** TCN-2026-NCLT-00874
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-guwahati/uco-bank-vs-rmd-hotels-resorts-private-limited-bwyb7

## Summary

### Background

UCO Bank (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against RMD Hotels & Resorts Private Limited (Corporate Debtor) seeking initiation of the Corporate Insolvency Resolution Process (CIRP) due to a financial debt default of Rs. 2,03,00,950.93/- as of 31.07.2025. The Corporate Debtor raised several objections through an Interlocutory Application (IA), challenging the maintainability of the petition on grounds including lack of proper authorization for the signatory, non-compliance with evidentiary acts (Bankers' Books Evidence Act, 1891 and Information Technology Act, 2000), pendency of SARFAESI disputes before the DRT, issues with the NeSL Record of Default, and the contention that the default amount fell

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## Facts

UCO Bank (Financial Creditor) filed a petition under Section 7 of the IBC, 2016, against RMD Hotels & Resorts Private Limited (Corporate Debtor).

The petition sought initiation of CIRP against the Corporate Debtor for non-payment of a financial debt.

The alleged financial debt amounted to Rs. 2,03,00,950.93/- as on 31.07.2025.

The date of default is 15.03.2024, when the Corporate Debtor's loan accounts were classified as Non-Performing Assets (NPA).

RMD Hotels & Resorts Private Limited is a private company engaged in the business of hoteliers and hotel management.

UCO Bank sanctioned various financial facilities to the Corporate Debtor, including mortgage loans, cash credit, and project term loans, between 2007 and 2019.

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## Issues and analysis

### Issue 1: Whether the Petition is liable to be dismissed for want of valid authorisation in favour of the …

**Ratio:** Technical objections regarding authorization, not going to the root of the matter, do not

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**Reasoning:** A Letter of Authority dated 04.08.2025 issued by the Dy. Zonal Head, Zonal Office,

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**Interpretation:** The NCLT is not inclined to prescribe a requirement for a specific Board

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**Application:** The objection to the validity of authorization for the signatory of Form-I is

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## Parties

- **Judges:** Rammurti Ku…; Yogendra Kumar…
- **Appellants:** UCO B…
- **Respondents:** RMD Hotels &…
- **Other parties:** Committee of…; Ramen…; +1 more
- **Advocates:** Karan B…; Rakesh…; +2 more

## Timeline

- **2007-09-10 — Initial Mortgage Loan…**: UCO Bank sanctioned a mortgage loan facility of Rs. 15,83,000/- to RMD Hotels & Resorts…
- **2010-04-24 — Additional Financial…**: UCO Bank sanctioned a cash credit facility of Rs. 13,00,000/- and a term loan of Rs.…

## 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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