# In the matter of LIMTEX TEA & INDUSTRIES LTD.

> NCLT judgment dated 2026-02-05. Citation: TCN-2026-NCLT-00113. UCO Bank filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 5 Feb 2026
- **Citation:** TCN-2026-NCLT-00113
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/limtex-tea-industries-ltd-37b2e706

## Summary

### Background

UCO Bank filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Limtex Tea & Industries Ltd., seeking initiation of Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor had availed credit facilities from the Financial Creditor, which later became a Non-Performing Asset (NPA).

## Facts

UCO Bank, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Limtex Tea & Industries Ltd., the Corporate Debtor.

The Corporate Debtor availed credit facilities from the Financial Creditor with a limit of Rs. 750 Lakhs.

The credit facility was sanctioned on 20.11.2014 and accepted by the Corporate Debtor.

The Corporate Debtor defaulted in payment, and the account was classified as a Non-Performing Asset (NPA) on 31.10.2016.

The outstanding amount due to the Financial Creditor was Rs. 11,35,20,260.07.

The petition was initially dismissed due to limitation but was later recalled.

The Corporate Debtor proposed a One Time Settlement of Rs. 2 Crores in 2021.

…

## Issues and analysis

### Issue 1: Whether the application …

**Ratio:** The application is not

…

**Reasoning:** The Corporate Debtor acknowledged its liability in its balance sheets for the financial

…

**Interpretation:** Entries in balance sheets and one-time settlement proposals amount to

…

**Application:** The Tribunal applied the principle that acknowledgments of debt in balance

…

## Parties

- **Judges:** BIDISHA BA…; Cmde Siddharth…
- **Appellants:** UCO B…
- **Respondents:** Limtex Tea &…
- **Other parties:** CA Sandip…
- **Advocates:** Rahul A…; Aditya G…

## Timeline

- **2014-11-20 — Sanction of Credit…**: Credit facility was…
- **2016-10-31 — Account Classified as…**: The Corporate Debtor's account was…

## 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-kolkata/limtex-tea-industries-ltd-37b2e706