# Kotak Mahindra Bank Limited vs. Unity Realty And Developers Limited

> NCLT judgment dated 2026-09-22. Citation: TCN-2026-NCLT-01064. Kotak Mahindra Bank Limited (Financial Creditor) filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 22 Sept 2026
- **Citation:** TCN-2026-NCLT-01064
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/kotak-mahindra-bank-limited-vs-unity-realty-and-developers-limited-i024s

## Summary

### Background

Kotak Mahindra Bank Limited (Financial Creditor) filed an application under Section 7 of the IBC, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Unity Realty And Developers Limited (Corporate Debtor). The application was based on a financial debt of Rs. 68,48,63,360.22, arising from financial facilities originally sanctioned by ING Vysya Bank Limited (which later amalgamated with Kotak Mahindra Bank) to M/s Unity Infraprojects Limited (Principal Borrower), for which the Corporate Debtor acted as a Corporate Guarantor. The Principal Borrower's account was declared NPA on 30.06.2015, and the guarantee was invoked on 07.10.2019. The liability of the Corporate Debtor was subsequently adjudicated by the DRT-II, Delhi, which issued a judgment on

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## Facts

C.P.(IB) No.247/MB/2026 was filed on 25.02.2026 by Kotak Mahindra Bank Limited (Financial Creditor) against Unity Realty And Developers Limited (Corporate Debtor) under Section 7 of the IBC, 2016.

The Financial Creditor claimed a default amount of Rs. 68,48,63,360.22 as on 31.08.2025.

The date of default was stated as 23.09.2023, and the date of NPA was 30.06.2015.

The Corporate Debtor is a Corporate Guarantor for the debts of the Principal Borrower, M/s Unity Infraprojects Limited.

Financial facilities were originally sanctioned by ING Vysya Bank Limited (which amalgamated with Kotak Mahindra Bank Limited on 01.04.2015) vide Sanction Letter dated 14.08.2008.

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## Issues and analysis

### Issue 1: Whether the Section 7 application filed by the Financial Creditor is barred by limitation, given …

**Ratio:** A judgment/decree for money or a Recovery Certificate issued by a competent tribunal

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**Reasoning:** The Hon'ble Supreme Court in Dena Bank (Now Bank of Baroda) v. C. Shivakumar Reddy &

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**Interpretation:** The limitation period for filing a Section 7 application is not solely tied to

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**Application:** The DRT passed its Judgment on 17.08.2023, and the Recovery Certificate was

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## Parties

- **Judges:** SAMEER…; NILESH S…
- **Appellants:** Kotak Mahindra…
- **Respondents:** Unity Realty And…
- **Other parties:** Madhav Na…; Pramod Dattaram…
- **Advocates:** Rohan Ag…; Chinm…; +2 more

## Timeline

- **2008-08-14 — Initial Financial…**: Working-capital facilities aggregating to Rs. 5,000 lakhs were initially sanctioned by…
- **2009-06-09 — Facilities Renewed/Modif…**: The financial facilities were renewed/reviewed/modified under sanction letters,…

## 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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