# Unity Small Finance Bank Limited vs. M/S Serveall Constructions Private Limited

> NCLT judgment dated 2026-07-29. Citation: TCN-2026-NCLT-00805. Unity Small Finance Bank Limited, as the Financial Creditor, filed an application under Section…

- **Court:** NCLT
- **Order date:** 29 Jul 2026
- **Citation:** TCN-2026-NCLT-00805
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/unity-small-finance-bank-limited-vs-ms-serveall-constructions-private-limited-6ebih

## Summary

### Background

Unity Small Finance Bank Limited, as the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/S Serveall Constructions Private Limited, the Corporate Debtor. The application, filed on 13.12.2023, asserts that the Corporate Debtor defaulted on a payment of Rs. 231,14,45,121/- along with interest and costs, as evidenced by a 'Record of financial information-Form C' dated 30.08.2023. The Corporate Debtor had availed various overdraft facilities from Punjab and Maharashtra Co-operative Bank Limited, which later amalgamated with the Applicant Bank. These facilities were secured by personal guarantees and mortgages of immovable properties of a group company,

…

## Facts

Unity Small Finance Bank Limited filed a Company Application under Section 7 of the IBC, 2016, seeking to initiate CIRP against Serveall Constructions Private Limited.

The application was filed on 13.12.2023.

The Corporate Debtor defaulted on a payment of Rs. 231,14,45,121/- along with interest @13% from 01.02.2021, plus Rs. 70,800/- cost and Rs. 5 Lakhs arbitration fees as on 28.04.2022.

The Financial Creditor filed 'Record of financial information-Form C' dated 30.08.2023, generated by NeSL, showing the default.

The Corporate Debtor had availed various overdraft facilities from Punjab and Maharashtra Co-operative Bank Limited.

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC, 2016, for initiating CIRP against the Corporate …

**Ratio:** An application under Section 7 of the IBC must be admitted if the Adjudicating Authority

…

**Reasoning:** The Corporate Debtor availed various credit facilities, and the amounts were disbursed

…

**Interpretation:** Section 7(5)(a) of the IBC empowers the Adjudicating Authority to admit an

…

**Application:** Given the established debt, unrebutted default, and the completeness of the

…

## Parties

- **Judges:** JYOTSNA S…; Anu Jagmoha…
- **Appellants:** Unity Small…
- **Respondents:** M/S Serveall…
- **Other parties:** Bihari Lal…
- **Advocates:** Atul Sh…; Renuka…; +2 more

## Timeline

- **2008-12-03 — Sanction of Overdraft…**: Applicant Bank sanctioned a mortgage overdraft facility of Rs. 20,00,00,000/- to the…
- **2019-10-07 — First Demand…**: Applicant issued a Demand Notice under Section 13 of the SARFAESI Act, 2002, due to…

## 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)

---

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-new-delhi/unity-small-finance-bank-limited-vs-ms-serveall-constructions-private-limited-6ebih