# Union Bank Of India vs. Heera Hospitality Private Limited

> NCLT judgment dated 2026-09-08. Citation: TCN-2026-NCLT-00945. Union Bank of India, as Financial Creditor, filed an application under Section 7 of the IBC,…

- **Court:** NCLT
- **Order date:** 8 Sept 2026
- **Citation:** TCN-2026-NCLT-00945
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/union-bank-of-india-vs-heera-hospitality-private-limited-777dl

## Summary

### Background

Union Bank of India, as Financial Creditor, filed an application under Section 7 of the IBC, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Heera Hospitality Private Limited, the Corporate Debtor. The application was filed on February 3, 2026, citing a default amount of Rs. 3,45,11,940.74/- with the date of default being April 10, 2023. The Corporate Debtor, engaged in the hospitality business, had availed multiple credit facilities from the Financial Creditor, including a Union Guaranteed Emergency Credit Line (UGECL) facility. The Corporate Debtor's accounts were classified as Non-Performing Assets (NPA) on April 10, 2023, and despite demand and recall notices, the outstanding dues remained unpaid.

## Facts

Union Bank of India, the Financial Creditor, filed an application (C.P. (IB) No.133/MB/2026) on February 3, 2026, under Section 7 of the IBC, 2016, to initiate CIRP against Heera Hospitality Private Limited, the Corporate Debtor.

The application was affirmed by Mr. Amit Bhaskar Rao Thorat, an authorised signatory of Union Bank of India.

The Corporate Debtor is a private limited company engaged in the hospitality services business since 2010.

The Corporate Debtor approached the Financial Creditor in 2019 for credit facilities aggregating to Rs. 3,46,47,000/-, which were sanctioned on August 26, 2019, and fully disbursed on October 9, 2019.

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## Issues and analysis

### Issue 1: Whether the date of default declared by the Financial Creditor is incorrect or non-est in law, and …

**Ratio:** The date of default is established by the declaration of the loan account as

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**Reasoning:** The Financial Creditor presented an NPA certificate stating the Corporate Debtor's

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**Interpretation:** The Adjudicating Authority's role under Section 7 is limited to verifying the

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**Application:** The Tribunal found the Corporate Debtor's contention regarding the incorrect

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## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** Union Bank of…
- **Respondents:** Heera Hospitality…
- **Other parties:** Committee of…; Vandana Cha…; +2 more
- **Advocates:** Rohit G…; Niharika…; +3 more

## Timeline

- **2009-09-14 — Board Reso…**: Board Resolution passed, pursuant to which Power of Attorney was signed by Mr. Amit…
- **2019-08-26 — Sanction…**: Financial Creditor approved and sanctioned credit facilities aggregating to Rs.…

## 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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