Uco Bank vs Limtex Tea & Industries Ltd

NATIONAL COMPANY LAW APPELLATE TRIBUNAL PRINCIPAL BENCH, NEW DELHI Company Appeal (AT) (Ins.) No. 281 of 2023 IN THE MATTER OF: UCO Bank ...Appellant

Versus

Limtex Tea & Industries Ltd. ...Respondent

Present: For Appellant : Mr. Partha Sil, Mr. Utkarsh Dwivedi, Mr. Srijit Datta, Advocates. For Respondent : None.

ORDER

(Hybrid Mode)

09.07.2025: None appears on behalf of the Respondent. Even they have

not filed reply to the appeal and vide order dated 10.02.2025, their right to file

reply was closed. Today also none has appeared on behalf of the Respondent,

hence, we proceed to hear this appeal.

2. This appeal is against an impugned order dated 12.01.2023 whereby a

petition filed under Section 7 of the IBC, 2016 by the Appellant herein before

the Ld. NCLT, Kolkata Bench was dismissed.

3. It is the submission of the Ld. Counsel for the Appellant the reasoning

given in paragraph 11 of the impugned order is factually incorrect. The Ld.

NCLT though was of the view that 18 crores recovered from the sale of the

assets as mentioned in the paragraph 9 of the impugned order were credited to

the loan account of the CD as maintained by the UCO Bank but whereas only

Rs. 1.85 crores had come to the appellant bank from the sale proceeds of two

Cont'd../-

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such properties as mentioned above also further the Ld. NCLT relied upon a

letter dated 12.11.2020 as mentioned in paragraph 9 of its order to take such a

view.

4. Ld. Counsel for the appellant has shown us correspondences between

the parties. First a letter dated 03.11.2020 written by UCO Bank to CFM Asset

Reconstruction Pvt. Ltd. wherein the UCO Bank had only accorded permission

to CFM Asset Reconstruction Pvt. Ltd. to sell the two properties mentioned

therein and to make payment of an amount of Rs.1.85 crores on account. The

said letter is as under:

Company Appeal (AT) (Ins.) No. 281 of 2023 -3-

5. Further, a letter dated 09.11.2020 was again sent by UCO Bank to

M/s CFM Asset Reconstruction Pvt. Ltd. wherein they have given no

objection certificate qua the sale of the two assets mentioned therein. The

said letter is also as under:

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6. Now at such time even after adjusting Rs. 1.85 crores the amount due

against the Corporate Debtor was Rs. 5.66 crores, as shown depicted in the

statement of account, annexed along with appeal at pages no. 299 & 300.

7. The Ld. Counsel for the Appellant has also referred to the OTS

proposal dated 15.12.2021 given by the CD wherein the appellant had

requested the appellant bank to accept an amount of Rs. 2 crores. This was

after the payment of Rs. 1.85 crores was credited on sale of the two

properties aforementioned. The Ld. Counsel for the appellant has also

referred to a letter dated 28.01.2022, written by the UCO Bank to the

Corporate Debtor, in response to its OTS proposal dated 15.12.2021

wherein the appellant has actually demanded an amount of Rs. 5.66 crores

plus accrued interest from the date of NPA till date. The letter dated

28.01.2022 of UCO Bank is as under:-

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8. Thus, it was the submission of the Ld. Counsel for the Appellant that

the findings given in the paragraph 11 of the impugned order are incorrect

and it was so given as the letters dated 15.12.2021; 28.01.2022 were

inadvertently never filed before the Ld. NCLT. A bare perusal of such

documents would reveal the amount of Rs. 1.85 crores was never a full and

Company Appeal (AT) (Ins.) No. 281 of 2023 -6-

final settlement but a part adjustment of dues as the major portion of sale

consideration went to SBI viz. the another Financial Creditor.

9. Thus in the circumstances and in view of the documents shown to us

it would be appropriate if we set aside the impugned order and allow the

appellant to file all relevant documents before the Ld. NCLT so that an

overall view be taken by the Ld. NCLT in this regard.

10. Considering the above submissions, we set aside the impugned order

dt. 12.01.2023 and restore C.P. (IB) No. 1929/KB/2019. The parties are

directed to appear before the Ld. NCLT on 30.07.2025 for further

proceedings.

11. The appeal stands disposed of. Pending applications, if any, are

closed.

[Justice Yogesh Khanna] Member (Judicial)

[Mr. Indevar Pandey] Member (Technical)

SA/MD

Company Appeal (AT) (Ins.) No. 281 of 2023