Union Bank of India vs Tirupatee Agro Industries Private Limited

The case is fixed for pronouncement of the order. The order is pronounced in the open court, vide separate order. Detailed order is being uploaded on the NCLT portal today.

[PER: BENCH]

This is an Application bearing C.P. (IB) No.984/MB/2025 filed on 16.09.2025 by Union Bank of India, the Applicant (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “the Code”), read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 (hereinafter referred to as “the AAA Rules”), through Mr. Amit Thorat - Chief Manager of the Applicant vide Power of Attorney dated 14.09.2009, for initiating Corporate Insolvency Resolution Process (hereinafter referred to as “CIRP”) in respect of Tirupatee Agro Industries Private Limited, the Corporate Debtor (CD).

The Applicant is a body corporate constituted under the Banking Companies Act, 1970.

The Applicant has relied on the following documents:

As per Part-IV of the Application the total amount claimed to be in default by the Applicant is Rs. 25,85,21,665.08/- (Twenty-five Crore Eighty-Five Lakhs Twenty-One Thousand Six Hundred Sixty-Five Rupees and Eight Paise) including principal and unapplied interest, details of which are in the following table:

The date of default is mentioned as 15.02.2024 i.e. the date of NPA.

It is submitted that the Applicant sanctioned a Cash Credit facility of Rs. 5 Crores along with a Term Loan of Rs.10.90 Crores on 17.05.2021. Thereafter, vide revised sanction letter dated 13.06.2022, the Cash Credit was enhanced to Rs. 13 Crores. Copies of Sanction letters dated 17.05.2021 and 13.06.2022 are annexed as Annexure D to the Application. The total amount of facilities sanctioned by the Applicant is as below:

The financial facilities were provided to the CD through the creation of specific accounts. Copies of Loan A/c Statements for Cash Credit and Term Loan facilities are annexed as Annexure E1 and E2 to the Application. The disbursement dates are detailed in the said loan account statements for the loan A/c nos. as stated below:

Further, it is stated that the CD failed to honour its repayment obligations, resulting in irregularities in the accounts. Consequently, the accounts were classified as Non-Performing Asset (NPA) on 15.02.2024.

The Applicant issued a demand notice under Section 13(2) of the SARFAESI Act on 16.02.2024 demanding payment of the outstanding dues within 60 days. As the CD failed to comply, possession notice under Section 13(4) was issued on 12.07.2024. Copy of Demand notice under section 13(2) of the SARFAESI Act is annexed as Annexure G & Copies of possession notices under Section 13(4) are annexed as Annexure H Colly.

It is submitted that the CD has committed default in repayment of the financial debt, exceeding the threshold prescribed under the Code. The debt is duly secured and documented through mortgage, hypothecation and guarantee agreements. The default is continuing and has not been rectified despite statutory notices under SARFAESI Act and multiple opportunities extended by the Applicant.

The Tribunal vide interim order dated 24.09.2025 had issued court notice. The Applicant had served the notice upon the CD vide an email dated 09.10.2025, which is recorded vide interim order dated 13.10.2025. To this effect, the Applicant filed an Affidavit of Service dated 11.10.2025.

The CD had appeared on 13.10.2025 and undertook to file vakalatnama along with reply and stated that the notice was received by the CD. The CD sought extension of the order dated 24.09.2025 to file the above-mentioned documents. The same was allowed by the Tribunal.

Further, the following is noted vide interim order dated 06.11.2025:

This Tribunal through the aforesaid order, closed the right to file reply of the CD.

Thereafter, the matter was posted for hearing on 25.11.2025. The matter was heard and none had appeared on behalf of the CD on the said date. The Applicant was heard and the matter was reserved on the said date.

The Applicant has relied on the following judgments:

We have heard the Ld. Counsel for the Applicant and have perused the records as placed before us. Our findings in the matter are as under: -

The CD had approached the Applicant for financial facilities. On perusal of the documents it is seen that the Applicant had sanctioned a Cash Credit facility of Rs. 5 crores and Term Loan of Rs. 10.90 crores on 17.05.2021 vide Sanction Letter dated 17.05.2021. However, vide Sanction Letter dated 13.06.2022 the Cash Credit facility was enhanced to Rs. 13 crores from the then existing limit of Rs. 5 crores. The aforesaid renewal facility was accepted by the CD vide letter dated 17.06.2022. It is observed that the Applicant had disbursed the above facilities to the CD and hence, the CD is in a financial relation with the Applicant.

The loan a/c details of the CD are as stated below:

The loan facilities were secured by way of equitable mortgage over immovable properties situated at Chincholi MIDC and Solapur, along with hypothecation of stocks, book debts, plant & machinery, and personal guarantees executed by the promoters. The CD had issued Demand Promissory Note dated 24.06.2022 for an amount of Rs. 13 crores together with interest at the rate of 11.7%, as a security for the repayment of the amounts outstanding with respect to credit limits. The Applicant has attached the composite debit balance confirmation dated 04.06.2021 and 29.12.2021 of the CD stating therein, that the CD is indebted to the Applicant for an amount of Rs. 10,90,00,000/- and Rs. 5,00,00,000/- respectively.

The repayment terms of the term loan account as per Clause 4 of the Sanction Letter dated 17.05.2021 are as follows:

From the above terms, we see that the CD had to repay the term loan facility in 74 monthly instalments, whereat the first instalment fell due on February, 2022 and interest was to be paid as and when debited.

Further, in Clause 11(2) of the Sanction Letter dated 17.05.2021, the events of default are mentioned, which are reproduced as below:

As per the above clauses 4 and 11(2), we notice that the CD had to pay the instalment and interest amount on the facilities to the Applicant and failure to do so would constitute an event of default. On perusal of the loan statements attached to the Application, we see that the CD had failed to pay the interest/instalment amount and hence, the CD committed default as per the aforesaid clause. The balance amount in Cash Credit A/c bearing no. 077425010000002 shows an outstanding amount of Rs. 13,03,85,900/- as on 15.02.2024 and the Term Loan A/c bearing no. 077426390000001 shows an amount of Rs. 8,10,16,800/- as on 19.03.2025 as outstanding. As a result of irregularity in the accounts, the said accounts were declared as NPA on 15.02.2024.

Thereafter, the Applicant issued notice under Section 13(2) of the SARFAESI Act dated 16.02.2025 to the CD demanding to pay the outstanding dues amounting to Rs. 21,77,41,804.88/- within 60 days. The demand notice was delivered to the CD as the postal receipts and tracking reports are attached to the Application. The CD failed to pay the outstanding dues within the stipulated time period. Therefore, it is seen that the CD has defaulted in paying the outstanding debt.

Further, the Applicant has attached the Certificate under IT Act dated 25.06.2025 certifying that the enclosed printouts reflect the entries stored in the Bank’s Computer System, alongwith Certificate under Section 2A of Bankers Book Evidence Act, 1891.

The Applicant stated that the date of default is 15.02.2024 i.e. the date when the accounts of CD were declared as NPA.

The Applicant has also placed on record the NeSL record of default in Form D, which reflects the Status of Authentication of default as ‘Authenticated’ and the total outstanding amount of the two facilities as Rs.15,43,52,876/- and Rs. 9,59,72,453/-and date of default as 15.02.2024.

The Applicant has relied on the judgments of the Hon’ble Supreme Court in Innoventive Industries Ltd. v. ICICI Bank (2018) 1 SCC 407 and E.S. Krishnamurthy v. Bharath Hi-Tech Builders Pvt. Ltd. (2022) 3 SCC 161 wherein the Hon’ble Supreme Court held that, once the debt and default are established than the Adjudicating Authority must admit the petition. We hold that the reliance placed by the Applicant on the above-mentioned judgments is relevant and appropriate.

The Applicant has proposed the name of Mr. Mahesh Chand Gupta to act as the Interim Resolution Professional (IRP) and has given his declaration in Form 2, inter alia, stating that no disciplinary proceeding is pending against him. The Applicant has attached valid AFA in Form B of the IRP, which is valid till 31.12.2025.

Thus, it is clear from perusal of the record that an amount more than the threshold limit of Rs.1 Crore under Section 4 of the Code was due and payable by the CD to the Applicant. Hence, we find that the Applicant has been able to substantiate the existence of a financial debt due and payable by the CD, which remained unpaid and in default. The debt so owed by the CD to the Applicant falls within the definition of “financial debt” under Section 5(8) of the Code.

In view of the above, we find that requisite conditions necessary to trigger CIRP in respect of the CD are fulfilled, the Application is complete as all the relevant documents have been attached by the Applicant along with the Application. As a result, the matter deserves to be admitted under Section 7 of the Code.

We make it clear that at this stage we have not crystalized the amount as claimed in this Application, the same is left to be collated by the IRP.

In view of the aforesaid findings, Application bearing C.P.(IB) No.984/MB/2025 filed under Section 7 of the Code by Union Bank of India, the Applicant, for initiating CIRP in respect of Tirupatee Agro Industries Private Limited, the Corporate Debtor is hereby admitted.

We further declare moratorium under Section 14 of the Code with consequential directions as mentioned below: -