# In the matter of Vitthal Corporation Ltd.

> NCLT judgment dated 2026-03-13. Citation: TCN-2026-NCLT-00292. 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-00292
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/vitthal-corporation-ltd-725ea446

## 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 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.

The Corporate Debtor submitted a One Time Settlement (OTS) proposal on 12.05.2023, which was rejected.

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

The NCLT issued a notice dated 06.01.2026.

…

## Issues and analysis

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

**Ratio:** The application is not

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**Reasoning:** The NCLT considered the Supreme Court's suo motu extension of limitation during the

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**Interpretation:** The suo motu extension of limitation by the Supreme Court and the

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**Application:** The NCLT applied the principles of Section 18 of the Limitation Act and the

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## Parties

- **Judges:** SAMEER…; NILESH S…
- **Appellants:** Union Bank of…
- **Respondents:** Vitthal``…; Vitthal Corporatio…
- **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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