# In the matter of VITTHAL CORPORATION LIMITED

> NCLT judgment dated 2026-03-13. Citation: TCN-2026-NCLT-00243. Union Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 13 Mar 2026
- **Citation:** TCN-2026-NCLT-00243
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/vitthal-corporation-limited-32561da1

## Summary

### Background

Union Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Vitthal Corporation Ltd., seeking commencement of CIRP. The application pertains to a financial debt arising from credit facilities granted to farmers for sugarcane cultivation, with the corporate debtor acting as a guarantor.

## Facts

Union Bank of India granted credit facilities of Rs. 30 crores to farmers for sugarcane cultivation under the UGC Scheme.

Vitthal Corporation Ltd. provided a corporate guarantee dated 14.09.2016 for the said credit facilities.

The dates of default are stated as 31.01.2019 and 31.10.2019.

The total amount of claim in default as on 31.08.2025 is Rs. 46,81,83,292.69/-.

The loan accounts were classified as Non-Performing Assets (NPA) on 31.03.2021 and 30.04.2021.

A One Time Settlement (OTS) proposal dated 12.05.2023 was submitted by the Corporate Debtor.

The Financial Creditor invoked the guarantee vide a demand notice dated 14.12.2021.

The Corporate Debtor argued that the actual date of default should be 16.12.2021, two days after the invocation of the guarantee.

## Issues and analysis

### Issue 1: Whether the application under Section 7 …

**Ratio:** The application is not barred by limitation due to the OTS proposal constituting a valid

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**Reasoning:** The Tribunal considered the dates of default, the OTS proposal, and the Supreme Court's

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**Interpretation:** Section 18 of the Limitation Act allows for the extension of the limitation

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**Application:** The Tribunal applied these principles to the facts of the case, considering the

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## Parties

- **Judges:** SAMEER…; NILESH S…
- **Appellants:** Union Bank of…
- **Respondents:** Vitthal``…
- **Other parties:** Ankur K…
- **Advocates:** Ankur K…; Saniya…; +6 more

## Timeline

- **2016-09-14 — Corporate Gu…**: Vitthal Corporation Ltd. provided a…
- **2019-01-31 — Date of D…**: One of the dates of default…

## 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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