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

> NCLT judgment dated 2026-07-20. Citation: TCN-2026-NCLT-00660. Union Bank of India, a Financial Creditor, filed an application under Section 7 of the IBC,…

- **Court:** NCLT
- **Order date:** 20 Jul 2026
- **Citation:** TCN-2026-NCLT-00660
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/union-bank-of-india-vs-n-kumar-retails-properties-private-limited-d32zl

## Summary

### Background

Union Bank of India, a Financial Creditor, filed an application under Section 7 of the IBC, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against N. Kumar Retails & Properties Private Limited (Corporate Debtor). The Corporate Debtor had availed working capital facilities, which were later enhanced, and defaulted on repayments from November 23, 2022. The loan accounts were declared Non-Performing Assets (NPA) on March 27, 2023. The Financial Creditor issued a SARFAESI notice and filed an application before the Debt Recovery Tribunal (DRT), Nagpur, for recovery of dues. The Corporate Debtor, while admitting liability, offered a One Time Settlement (OTS) of Rs. 4 Crores, which was rejected by the Financial Creditor.

## Facts

Union Bank of India (Financial Creditor/Applicant) filed an application C.P. (IB) No.1361/MB/2025 under Section 7 of the IBC, 2016, on September 30, 2025, to initiate CIRP against N. Kumar Retails & Properties Private Limited (Corporate Debtor).

The application was filed by Mr. Rohit Pradeep Gulkari, Branch Manager of Union Bank of India, via Power of Attorney dated April 27, 2015.

The Corporate Debtor, a company registered under the Companies Act, 1956, had requested and availed fund-based working capital facilities from Union Bank of India.

Initial working capital facilities of Rs. 3,00,00,000/- were sanctioned on September 15, 2012, and later enhanced to Rs. 4,65,00,000/- on March 1, 2018.

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the IBC, 2016, is barred …

**Ratio:** An offer of One Time Settlement (OTS) by the Corporate Debtor constitutes an

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**Reasoning:** The Tribunal noted that the date of default was March 27, 2023. The Corporate Debtor's

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**Interpretation:** The NCLAT judgment in Dinesh G Jaiswal vs. Punjab National Bank (2022)

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**Application:** Given the OTS offer on March 6, 2025, the limitation period was extended to

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## Parties

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

## Timeline

- **2012-09-15 — Initial Working Capital…**: Union Bank of India sanctioned fund-based working capital facilities of Rs. 3,00,00,000/-…
- **2012-09-20 — Security Documents…**: Corporate Debtor executed Letter of Guarantee, Hypothecation Agreement, Memorandum of…

## 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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