Union Bank of India (Financial Creditor) filed a Section 7 application under the Insolvency and Bankruptcy Code, 2016 (IBC) against N. Kumar Retails & Properties Private Limited (Corporate Debtor) for a default of Rs. 6,05,34,209.34/-. The Corporate Debtor had availed working capital facilities, subsequently defaulted on repayments, and its account was declared a Non-Performing Asset (NPA). The Financial Creditor had previously initiated recovery actions under the SARFAESI Act and before the Debt Recovery Tribunal (DRT). The Corporate Debtor disputed the debt amount, the classification as NPA, the validity of the security interest, and argued that the Section 7 application was time-barred and that the Financial Creditor was pursuing multiple remedies simultaneously.

Union Bank of India (Financial Creditor) filed a Section 7 application under the Insolvency and Bankruptcy Code, 2016 (IBC) against N. Kumar Retails & Properties Private Limited (Corporate Debtor) for a default of Rs. 6,05,34,209.34/-. The Corporate Debtor had availed working capital facilities, subsequently defaulted on repayments, and its account was declared a Non-Performing Asset (NPA). The Financial Creditor had previously initiated recovery actions under the SARFAESI Act and before the Debt Recovery Tribunal (DRT). The Corporate Debtor disputed the debt amount, the classification as NPA, the validity of the security interest, and argued that the Section 7 application was time-barred and that the Financial Creditor was pursuing multiple remedies simultaneously.