# M/s. Union Bank of India vs. M/s. Andhra Pradesh Gas Power Corporation Ltd.

> NCLT judgment dated 2026-08-19. Citation: TCN-2026-NCLT-00869. M/s. Union Bank of India (Financial Creditor) filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 19 Aug 2026
- **Citation:** TCN-2026-NCLT-00869
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-hyderabad/ms-union-bank-of-india-vs-ms-andhra-pradesh-gas-power-corporation-ltd-l92h9

## Summary

### Background

M/s. Union Bank of India (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Andhra Pradesh Gas Power Corporation Ltd. (Corporate Debtor). The application stemmed from the Corporate Debtor's failure to reimburse the Financial Creditor after two Bank Guarantees, issued in favor of GAIL (India) Limited, were invoked and honored. The outstanding amount claimed was Rs. 28,11,89,870/-, and the Corporate Debtor's account was classified as a Non-Performing Asset (NPA) on 28.11.2024.

## Facts

M/s. Union Bank of India (Applicant/Financial Creditor) filed a Section 7 IBC application against M/s. Andhra Pradesh Gas Power Corporation Ltd. (Corporate Debtor).

The application was instituted through Mr. Srinivas Reddy, Chief Manager, authorized by a Power of Attorney.

The Applicant sanctioned various credit facilities, including Open Cash Credit and Bank Guarantee/Letter of Credit facilities, to the Corporate Debtor.

The Corporate Debtor executed security documents such as Demand Promissory Notes, Counter Guarantees, Omnibus Counter Indemnity, Letter of Continuity, and Letter of Lien.

The Corporate Debtor acknowledged its subsisting liability through Letters of Acknowledgment of Debt dated 29.10.2019, 31.12.2019, and 04.04.2020.

…

## Issues and analysis

### Issue 1: Whether there exists a financial debt and a default by the Corporate Debtor within the meaning of …

**Ratio:** The Adjudicating Authority is satisfied that the relationship between the parties is that

…

**Reasoning:** The execution of loan and security documents (sanction letters, demand promissory notes,

…

**Interpretation:** "Financial debt" includes the liability arising from

…

**Application:** Union Bank of India, by honoring the invoked bank guarantees on behalf of

…

## Parties

- **Judges:** SHRI. RAJEEV…; SHRI. SANJA…
- **Appellants:** M/s. Union Bank…
- **Respondents:** M/s. Andhra…
- **Other parties:** K. Vatsa…
- **Advocates:** PBA Srini…; Barnali…; +1 more

## Timeline

- **1988-10-31 — Corporate Debtor…**: The Corporate Debtor, M/s. Andhra Pradesh Gas…
- **2009-10-20 — Sanction Lette…**: A Sanction Letter for credit facilities was issued by the Applicant to the Corporate…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-hyderabad/ms-union-bank-of-india-vs-ms-andhra-pradesh-gas-power-corporation-ltd-l92h9