Pursuant to Regulation 30 of the SEBI (LODR), 2015 we draw your attention to the earlier disclosure made by the company on 11-11-2025, regarding filing of a petition in the NCLT by UCO ....
Awaiting price reaction for this filing.
The NCLT Kolkata Bench dismissed the insolvency petition (CP(IB) No. 129/2025) filed by a consortium of banks led by UCO Bank against Nicco Uco Alliance Credit Ltd on December 18, 2025. The petition, filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, sought recovery of a claimed default of approximately Rs. 846.47 crore. The Tribunal ruled in the company's favour primarily on the ground of limitation, noting that the original default occurred in 2004 and the bank's attempt to use eight OTS (One-Time Settlement) proposals made between 2013 and 2024 as acknowledgments of debt to revive the time-barred claim was not legally tenable, since rejected settlement offers do not extend limitation. The court also observed that the company, originally an NBFC whose RBI licence was cancelled in 2005, had been defunct as a financial service provider for two decades.
This is a significant relief for shareholders as the company has avoided insolvency proceedings and potential liquidation. However, the underlying debt (last quantified at Rs. 33 crore in the December 2024 OTS proposal) still legally exists, and lenders may pursue recovery through other forums such as the Debt Recovery Tribunal, meaning the financial stress on the company is not fully resolved.