Authority: National Company Law Tribunal, Amaravati Bench
Order Date: 16 June 2026
Case Overview
The matter involves a petition filed by Union Bank of India (Asset Recovery Branch, Vijayawada) as Financial Creditor against Idupulapadu Cotton Mills Pvt Ltd as Corporate Debtor under Section 7 of the Insolvency and Bankruptcy Code, 2016. The case is registered as CP (IB)/1/7/AMR/2026 and was heard by a bench comprising Member (Judicial) Shri Kishore Vemulapalli and Member (Technical) Shri Umesh Kumar Shukla.
During the hearing, the Senior Counsel for the Corporate Debtor submitted that they have sent a One-Time Settlement (OTS) proposal to the Financial Creditor, which is currently under consideration. The Corporate Debtor sought four weeks' time to report the result of the OTS consideration. Additionally, the Counsel for the Corporate Debtor requested short time to file the copy of costs paid memo in compliance with the order dated 13 May 2026.
The Counsel for the Financial Creditor confirmed these submissions, stating that they have received the OTS proposal from the Corporate Debtor and it is under consideration by the Financial Creditor. The Financial Creditor also sought four weeks' time for reporting the result of the OTS.
Final Outcome
The NCLT granted four weeks' time as requested by both parties for the OTS consideration process. The tribunal specifically directed the registry to forward a copy of the order to the Managing Director and Chief Executive Officer of the Financial Creditor (Union Bank of India) to expedite the decision on the OTS proposal. The matter has been listed for further consideration on 17 July 2026. The order explicitly states that if the parties fail to get acceptance of the OTS by the next date, the matter will be taken up for hearing on merits.
Topics: Insolvency Proceedings, Debt Settlement, Banking