# Union Bank of India vs. N Kumar Retails & Properties Private Limited

> NCLT judgment dated 2026-07-20. Citation: TCN-2026-NCLT-00649. Union Bank of India (Financial Creditor) filed a Section 7 application under the Insolvency and…

- **Court:** NCLT
- **Order date:** 20 Jul 2026
- **Citation:** TCN-2026-NCLT-00649
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/union-bank-of-india-vs-n-kumar-retails-properties-private-limited-79z2b

## Summary

### Background

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.

## Facts

Union Bank of India (Financial Creditor) filed a Section 7 application (C.P. (IB) No.1361/MB/2025) on 30.09.2025 against N. Kumar Retails and Properties Private Limited (Corporate Debtor).

The application seeks to initiate Corporate Insolvency Resolution Process (CIRP) for the Corporate Debtor.

The Financial Creditor is a banking company, and the Corporate Debtor is registered under the Companies Act, 1956.

The Corporate Debtor requested and was granted credit facilities by the Applicant.

The total amount claimed to be in default is Rs. 6,05,34,209.34/-, including a principal sum of Rs. 4,65,96,652.34/- and interest of Rs. 1,39,37,557.00/-.

The initial credit facilities were sanctioned and disbursed in 2012, and last enhanced on 01.03.2018 to Rs. 4,65,00,000/-.

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## Issues and analysis

### Issue 1: Whether the Section 7 application filed by the …

**Ratio:** An offer of One Time Settlement (OTS) and acknowledgment of liability in financial

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**Reasoning:** The Corporate Debtor's OTS offer dated 06.03.2025, made during DRT proceedings where

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**Interpretation:** An OTS proposal, even if ultimately rejected, can serve as an unequivocal

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**Application:** The Corporate Debtor's OTS offer of 06.03.2025 effectively extended the

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## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** Union Bank of…
- **Respondents:** N. Kumar Retails…
- **Other parties:** Committee of…; Directors of N.…; +1 more
- **Advocates:** Viraj P…; Aditya…; +2 more

## Timeline

- **2015-04-27 — Power of Attorn…**: Mr. Rohit Pradeep Gulkari, Branch Manager, issued a Power of Attorney for initiating…
- **2012-09-15 — Initial Credit Facility…**: Sanction letter for initial fund-based working capital facilities of Rs. 3,00,00,000/-…

## 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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