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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
The National Company Law Tribunal (NCLT), Amaravati Bench, has admitted an insolvency petition filed by Union Bank of India against Kallam Textiles Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC). The admitted default amount is Rs. 210.49 crore (approximately Rs.2,10,49,16,990.77) as of October 31, 2025. The company's loan accounts had turned into Non-Performing Assets (NPA) on June 29, 2023. The tribunal has appointed Mr. Rajesh Chillale as the Interim Resolution Professional (IRP) and declared a moratorium under Section 14 of IBC, which halts all legal proceedings, asset transfers, and recovery actions against the company. The textile manufacturer, which employs around 400 direct workers and over 2,000 contract workers, disputed the debt amount and claimed it had paid Rs.400 crore in interest over 30 years, but the NCLT admitted the petition noting that Section 7 requires only proof of default exceeding Rs.1 crore.
This is an extremely negative development for shareholders. The company has entered the Corporate Insolvency Resolution Process, management control has shifted to the IRP, and existing equity holders will likely face significant dilution or complete loss of value if a resolution plan is not successfully implemented within the IBC timeline.