# UNION BANK OF INDIA vs. M/s. AIR TRAVEL ENTERPRISES INDIA LTD.

> NCLT judgment dated 2026-07-21. Citation: TCN-2026-NCLT-00643. Union Bank of India, as Financial Creditor, filed an application (IA(IBC)/313/KOB/2026) under…

- **Court:** NCLT
- **Order date:** 21 Jul 2026
- **Citation:** TCN-2026-NCLT-00643
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kochi/union-bank-of-india-vs-ms-air-travel-enterprises-india-ltd-vgpdm

## Summary

### Background

Union Bank of India, as Financial Creditor, filed an application (IA(IBC)/313/KOB/2026) under Rule 11 of the NCLT Rules, 2016, seeking to withdraw the main company petition (CP(IB)/33/KOB/2023) against M/s Air Travel Enterprises India Ltd. (Corporate Debtor). The withdrawal was sought because the corporate debtor's account was closed under a One Time Settlement (OTS) after the entire OTS amount of Rs. 6.95 Crores was paid.

## Facts

Union Bank of India, the Financial Creditor, filed an application (IA(IBC)/313/KOB/2026) against M/s Air Travel Enterprises India Ltd., the Corporate Debtor.

The application was filed under Rule 11 of the National Company Law Tribunal Rules, 2016, seeking withdrawal of the proceedings in CP(IB)/33/KOB/2023.

The reason for seeking withdrawal was that the account was closed under a One Time Settlement (OTS).

During the pendency of the proceedings, the financial creditor and guarantors paid the entire OTS amount of Rs. 6.95 Crores, leading to the account closure.

The application incorrectly listed Dr. Sahadulla M.I. as the respondent in the present application, who is not the respondent in the main Company Petition CP(IB)/33/KOB/2023.

…

## Issues and analysis

### Issue 1: Whether the application for withdrawal of insolvency proceedings, filed under Rule 11 of NCLT …

**Ratio:** Inherent powers under Rule 11 of NCLT Rules cannot be invoked to circumvent or substitute

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**Reasoning:** The application was filed under Rule 11, but the IBC provides specific procedures for

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**Interpretation:** Rule 11 grants inherent powers, but these are supplementary and cannot override

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**Application:** The NCLT found the application fundamentally defective for relying on Rule 11

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## Parties

- **Judges:** Shri. Vina…; SHRI. RAVICHANDRAN…
- **Appellants:** Union Bank of…
- **Respondents:** M/s. Air Travel…
- **Other parties:** Committee of…; R. Rajm…
- **Advocates:** A.S.P.…; A C Venu…; +1 more

## Timeline

- **2026-07-14 — Date of Inst…**: The application IA(IBC)/313/KOB/2026 IN…
- **2026-07-21 — Order Del…**: The final order dismissing the application for withdrawal was delivered by the NCLT Kochi…

## 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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