The National Company Law Tribunal has initiated corporate insolvency resolution proceedings against Mumbai-based developer Unity Realty and Developers. Specifically, the NCLT admits insolvency plea against Unity Realty over a claimed default of Rs 68.49 crore. The Mumbai bench pronounced the order on September 22 under Section 7 of the Insolvency and Bankruptcy Code.
Dispute stems from corporate guarantee and legacy debt default
Furthermore, Unity Realty serves as a corporate guarantor for financial facilities availed by principal borrower Unity Infraprojects. Lenders classified Unity Infraprojects’ account as a non-performing asset back in June 2015.
Additionally, ING Vysya Bank originally sanctioned the facilities in 2008 before restructuring them into Rs 31.78 crore in 2015. Consequently, Kotak Mahindra Bank invoked the corporate guarantee in October 2019 to recover outstanding dues.
| Legal & Financial Metric | Case Details & Timeline |
| Claimed Default Amount | Rs 68.49 crore (as of August 31, 2025) |
| Date of Default | September 23, 2023 |
| Original Debt Sanction | ING Vysya Bank (2008) / Restructured in 2015 |
| DRT Recovery Certificate | Rs 55.94 crore plus interest (August 2023) |
| Insolvency Filing Date | February 25, 2026 |
NCLT rejects limitation objections and upholds guarantor liability
Therefore, the tribunal dismissed objections raised by Unity Realty regarding limitation periods and security trustee rights. Judges noted that the Debt Recovery Tribunal’s earlier judgment and recovery certificate remain unchallenged and valid.
Meanwhile, the tribunal confirmed that the DRT order creates a fresh cause of action within legal limitation periods. Thus, the court established that financial debt exists, satisfying all statutory requirements under the IBC framework.
