# Union Bank of India vs. Chaya Gupta RP JSM Devcons India Pvt Ltd

> NCLT judgment dated 2026-07-16. Citation: TCN-2026-NCLT-00663. Union Bank of India, a secured financial creditor, filed an interlocutory application (IA 238…

- **Court:** NCLT
- **Order date:** 16 Jul 2026
- **Citation:** TCN-2026-NCLT-00663
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-indore/union-bank-of-india-vs-chaya-gupta-rp-jsm-devcons-india-pvt-ltd-u49oi

## Summary

### Background

Union Bank of India, a secured financial creditor, filed an interlocutory application (IA 238 of 2025) under Section 60(5) of the IBC, seeking directions to the Resolution Professional (RP) of JSM Devcons India Pvt. Ltd. (Corporate Debtor). The bank requested the RP to reject claims from plot buyers who had not obtained a No Objection Certificate (NOC) from the bank, declare such claims null and void, and dismiss their applications for exclusion of plots from the Corporate Debtor's assets. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) on 12.04.2019, initiated by Daimler Financial Services Pvt. Ltd. Union Bank of India held an equitable mortgage over the project land, with plot sales being conditional upon obtaining NOCs from the

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## Facts

Union Bank of India is a secured financial creditor of JSM Devcons India Pvt. Ltd.

Union Bank of India sanctioned a Term Loan of Rs. 30,00,00,000/- to JSM Devcons India Pvt. Ltd. via a Sanction Letter dated 05.11.2012.

The loan was secured by an equitable mortgage over the project land and structure, and hypothecation of the company's fixed assets.

A Memorandum of Deposit of Title Deeds was executed on 24.11.2012, creating an equitable mortgage at Indore in favour of Union Bank of India.

The Corporate Debtor's account was classified as a Non-Performing Asset (NPA) on 30.06.2016.

Union Bank of India initiated proceedings under Sections 13(2) and 13(4) of the SARFAESI Act and obtained an ex-parte order dated 02.11.2018 from the Debts Recovery Tribunal, Jabalpur.

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## Issues and analysis

### Issue 1: Whether the reliefs sought by the Applicant, namely, a direction to the Resolution Professional to …

**Ratio:** The Resolution Professional does not perform an adjudicatory function and lacks the power

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**Reasoning:** The verification of claims undertaken by the Resolution Professional is an administrative

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**Interpretation:** Section 18(1)(b) of the Code and Regulation 13 of the IBBI (CIRP) Regulations,

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**Application:** The NCLT cannot grant the relief sought by Union Bank of India to direct the RP

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## Parties

- **Judges:** Brajendra Mani…; Man Mohan…
- **Appellants:** Union Bank of…
- **Respondents:** JSM Devcons India…; Chaya Gupta RP…
- **Other parties:** Committee of…; Daimler Financial…; +3 more
- **Advocates:** Deepak Saxe…

## Timeline

- **2012-11-05 — Loan San…**: Union Bank of India sanctioned a Term Loan of Rs. 30,00,00,000/- to the Corporate Debtor…
- **2012-11-24 — Mortgage Cr…**: A Memorandum of Deposit of Title Deeds was executed, creating an equitable mortgage at…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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