NCLT Mumbai Hauls Up Bank of India, Summons Chairperson Over Delay in Reviving BE Billimoria Insolvency Proceedings
Pranav B Prem
The National Company Law Tribunal (NCLT), Mumbai Bench has summoned the Chairperson of Bank of India, M.R. Kumar, to appear in person after expressing grave dissatisfaction over the bank’s conduct in handling settlement-related funds and its prolonged delay in seeking revival of insolvency proceedings against B.E. Billimoria & Company Limited. The direction was issued by a Bench comprising Ashish Kalia (Judicial Member) and Sanjiv Dutt (Technical Member) in an order passed on 15 October 2025.
The Tribunal noted that despite repeated opportunities, the explanations submitted by the bank lacked clarity and failed to address the inconsistencies surrounding the long delay in filing the revival plea. The Bench observed that the responses provided by the bank were “unsatisfactory and unbecoming” of its top management, particularly in the way the funds were handled and how the settlement terms had been treated over the years.
The dispute originated when Bank of India sanctioned loans totalling ₹313 crore to B.E. Billimoria & Company Limited under a sanction letter dated 14 November 2013. The company defaulted on repayment in December 2015, and the loan account was declared a Non-Performing Asset (NPA) on 31 December 2015. As of 28 February 2019, the outstanding amount was ₹283.44 crore.
Following continued defaults, the parties arrived at a One-Time Settlement (OTS) of ₹149.96 crore in Debt Recovery Tribunal (DRT) proceedings. The company again defaulted on the settlement terms, prompting the bank to file an application under the Insolvency and Bankruptcy Code before the NCLT. The insolvency petition was admitted on 20 September 2019.
Shortly thereafter, the National Company Law Appellate Tribunal (NCLAT) recorded a fresh settlement between the parties for ₹107 crore on 20 November 2019, while granting the bank the liberty to revive insolvency proceedings if the corporate debtor failed to comply. Eventually, only ₹22.8 crore was paid by the debtor, and the remaining amount remained outstanding.
It was only in 2024, five years after the settlement terms were breached, that the bank filed a revival application along with a plea seeking condonation of delay covering the period between 28 November 2019 and 14 May 2024. This unusual delay immediately attracted the scrutiny of the Tribunal, which repeatedly asked the bank to explain why it had taken no action for such an extended period despite being expressly permitted to revive the insolvency process upon default.
On 26 September 2025, the Tribunal directed the General Manager of the Bank of India to appear in person to explain the bank’s conduct and the handling of settlement funds. After receiving what it termed a “final explanation” on 15 October 2025, the Tribunal found the bank’s submissions still lacking and wholly unsatisfactory.
Taking serious note of what it considered evasive conduct, the Tribunal directed the Chairperson of Bank of India to personally appear before the Bench on the next date of hearing. It further ordered that he must file a personal affidavit, duly signed, setting out in detail the circumstances surrounding the delay and the manner in which the settlement funds were handled. The matter has been listed for 18 November 2025 for further proceedings.
Concluding its order, the Tribunal emphasized the seriousness with which statutory authorities must approach insolvency matters, especially where large public funds are involved. The Bench expressed concern that lapses by high-ranking officials could undermine the integrity of the resolution process and the efficacy of the insolvency framework.
Appearance
For Applicant: Advocate Prakash Shinde
For Respondent: Advocate Aniruth Purusothaman
Cause Title: Bank of India vs B E Billimoria And Company Ltd.
Case No: IA 3592/2024 & IA 4651/2024 In C.P. (IB)/1329(MB)2019
Coram: Ashish Kalia (Judicial Member), Sanjiv Dutt (Technical Member)
