NCLT Mumbai Summons Bank Of India Chairperson Over Delays In BE Billimoria Insolvency Revival

The National Company Law Tribunal at Mumbai recently summoned the Chairperson of Bank of India, MR Kumar to appear in person after expressing serious dissatisfaction over the bank's conduct in handling settlement funds and the delay in reviving insolvency proceedings against BE Billimoria & Company Limited. A coram of the Judicial Member Ashish Kalia and Technical Member Sanjiv Dutt, in an order passed on October 15 observed that the explanations given by the Bank were “unsatisfactory and unbecoming” of its top management. The tribunal noted that despite repeated directions, “no satisfactory response had been provided” regarding the delay and the handling of the money in question. It began when Bank of India sanctioned loans amounting to Rs 313 crore to Mumbai-based construction firm B.E. Billimoria & Company Limited through a sanction letter dated 14 November 2013. The company defaulted on repayment on 27 December 2015, and the loan account was classified as a Non-Performing Asset on 31 December 2015. As of 28 February 2019, the outstanding default stood at Rs 283.44 crore. After repeated failures to clear its dues, the company entered into a One Time Settlement (OTS) with the bank under DRT proceedings for Rs 149.96 crore. However, it again defaulted on the agreed terms. The bank then initiated insolvency proceedings before the National Company Law Tribunal (NCLT), Mumbai, which admitted the petition on 20 September 2019. Subsequently, the National Company Law Appellate Tribunal (NCLAT) recorded a fresh settlement between the parties for Rs 107 crore on 20 November 2019, granting the bank liberty to revive the insolvency process if the company failed to make full payment. Only Rs 22.8 crore was eventually paid, leading the bank to file a plea to revive insolvency in 2024. The plea was accompanied by a application to condone a five year delay from from 28 November 2019 to 14 May 2024.During the hearings, the tribunal questioned the bank over the long delay in filing the revival plea and sought an explanation. On 26 September 2025, it directed the General Manager of the Bank of India to appear in person to explain the conduct in the matter. Later, on 15 October 2025, after receiving a final explanation from the General Manager, the tribunal took serious note of the Chairman's behavior and found the conduct “unsatisfactory and unbecoming of his position.” The court then directed the “Chairman [of Bank of India] to appear in person before the Court” and to file a “personal affidavit detailing the circumstances” by the next date of hearing, set for 18 November 2025. Case Title: Bank of India vs B E Billimoria And Company Ltd. Case Number: IA 3592/2024 & IA 4651/2024 In C.P. (IB)/1329(MB)2019For Applicant: Advocate Prakash ShindeFor Respondent: Advocate Aniruth Purusothaman Click Here To Read/Download Order

NCLT Mumbai Summons Bank Of India Chairperson Over Delays In BE Billimoria Insolvency Revival

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NCLT Mumbai Summons Bank Of India Chairperson Over Delays In BE Billimoria Insolvency Revival

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