# Union Bank of India vs. Rashmi Realty Builders Private Limited

> NCLT judgment dated 2026-06-19. Citation: TCN-2026-NCLT-00583. Union Bank of India, the Financial Creditor (FC), filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 19 Jun 2026
- **Citation:** TCN-2026-NCLT-00583
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/union-bank-of-india-vs-rashmi-realty-builders-private-limited-8hejq

## Summary

### Background

Union Bank of India, the Financial Creditor (FC), filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Rashmi Realty Builders Private Limited, the Corporate Debtor (CD), seeking initiation of Corporate Insolvency Resolution Process (CIRP). The FC claimed a default of Rs. 60,97,67,085/- as of 31.12.2025, with the date of default stated as 31.12.2016. The CD raised objections, primarily arguing that the application was time-barred and that any CIRP should be project-specific, not against the entire corporate entity. The CD also filed an Interlocutory Application (IA) under Section 65 of the IBC, alleging that the FC initiated the proceedings with malicious intent.

## Facts

CP(IB) No. 1119 of 2025 was filed on 12.09.2025 by Union Bank of India (Financial Creditor) against Rashmi Realty Builders Private Limited (Corporate Debtor).

The application was filed under Section 7 of the IBC, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP).

The amount claimed to be in default is Rs. 60,97,67,085/- as on 31.12.2025.

The date of default is stated to be 31.12.2016.

Mrs. Archana J.S., Chief Manager of Union Bank of India, affirmed the application.

Mr. Purusottam Behera was proposed as the Interim Resolution Professional (IRP).

Union Bank of India sanctioned a Working Capital Term Loan (WCTL) of Rs. 32 Crores for the project 'Rashmi Starcity Phase II and III' on 29.01.2014.

…

## Issues and analysis

### Issue 1: Whether the application filed by Union Bank of India for initiating CIRP against Rashmi Realty …

**Ratio:** Acknowledgment of debt in a duly signed balance sheet, part-payments, and an OTS

…

**Reasoning:** The Corporate Debtor's balance sheet for FY 2018-19, signed on 25.06.2019, explicitly

…

**Interpretation:** Section 18 of the Limitation Act provides that a fresh period of limitation

…

**Application:** Considering the acknowledgment in the balance sheet (25.06.2019), the exclusion

…

## Parties

- **Judges:** NILESH SHARMA,…; SAMEER KAKAR,…
- **Appellants:** Union Bank of…
- **Respondents:** Rashmi Realty…
- **Other parties:** Yogesh Bo…; Hemendra B…; +1 more
- **Advocates:** Kaushal…; Drishti…; +3 more

## Timeline

- **2014-01-29 — Loan Sanc…**: Union Bank of India sanctioned a Working Capital Term Loan (WCTL) of Rs. 32 Crores for…
- **2014-03-04 — Mortgage Ex…**: A Registered Indenture of Mortgage was executed by Directors Mr. Yogesh Bosmiya and Mr.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-mumbai/union-bank-of-india-vs-rashmi-realty-builders-private-limited-8hejq