Kallam Textiles Limited has disclosed receiving a caveat petition notice from Union Bank of India regarding proceedings in the High Court of Telangana at Hyderabad. The company informed BSE Limited on 18-03-2026 about receiving this notice served by an advocate on behalf of Union Bank of India concerning the filing of a caveat petition in the High Court.

Legal Proceedings Update

The caveat petition has been filed under Section 148-A of the Code of Civil Procedure in the High Court of Telangana at Hyderabad. This development follows the bank's ongoing enforcement actions under the SARFAESI Act 2002, including asset recovery proceedings against the company.

Background of Asset Recovery Proceedings

The caveat petition relates to Union Bank's ongoing asset recovery efforts against Kallam Textiles Limited. According to the court documents, the bank had issued a Demand Notice under Section 13(2) of the SARFAESI Act on 11-09-2024 and subsequently took possession of secured properties by issuing a Possession Notice dated 12-09-2025. The bank's accounts were classified as NPA on 29-06-2023.

Sale and Auction Proceedings

Union Bank has issued a Sale/Auction Notice dated 06-02-2026 for the sale of secured properties situated in the State of Telangana, with the auction scheduled for 27-02-2026. The caveat petition is filed as a preventive measure to ensure the bank receives notice before any orders are passed on potential writ petitions that Kallam Textiles might file challenging the auction proceedings.

Parties Involved in Proceedings

The caveat petition names several parties as respondents/caveatees in the High Court proceedings:

Legal Strategy and Court Proceedings

The caveat petition is a preventive legal measure filed by Union Bank to ensure they receive notice before any orders are passed on potential writ petitions or interim applications that Kallam Textiles might file against the Sale/Auction Notice dated 06-02-2026. The bank has appointed advocate N V Pruthvi Raju to represent their interests in the High Court proceedings.

Regulatory Compliance

Kallam Textiles made this disclosure under Regulation 30 of SEBI Listing Regulations and the company's policy on determination of materiality for disclosure of events. The company has assured continued updates to the exchange regarding any further developments in this legal matter involving asset recovery proceedings under the SARFAESI Act.

Kallam Textiles Limited has received an official notice from the National Company Law Tribunal (NCLT) Amaravati Bench regarding insolvency proceedings initiated by Union Bank of India. The company disclosed this material information to BSE Limited on February 19, 2026, in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Case Details and Timeline

The insolvency proceedings have been filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, with Union Bank of India's Asset Recovery Branch, Vijayawada acting as the financial creditor against Kallam Textiles Limited as the corporate debtor.

NCLT Order and Proceedings

The NCLT Amaravati Bench, comprising Hon'ble Member (Technical) Shri Umesh Kumar Shukla and Hon'ble Member (Judicial) Shri Kishore Vemulapalli, issued the order on February 11, 2026. During the initial hearing, there was no representation on behalf of the financial creditor when the matter was called.

The tribunal has directed the registry to issue notice to the respondents by speed post and inform the Chairman and Managing Director of Union Bank of India about the proceedings. The company has been given four weeks from receipt of notice to file their counter affidavit after serving a copy to the other side.

Regulatory Compliance

Kallam Textiles Limited, formerly known as Kallam Spinning Mills Limited, promptly informed the stock exchange about this development through its Company Secretary and Compliance Officer, Golagani Ramesh Kumar. The company has committed to providing further updates to the exchange regarding any developments in this matter.

Company Background

The company, incorporated in 1992 with CIN L18100AP1992PLC013860, operates from Chowdavaram, Guntur, Andhra Pradesh. It holds ISO 9001 certification and is listed on BSE with scrip code 530201. This legal development represents a significant challenge for the textile manufacturer as it navigates the insolvency proceedings initiated by one of its financial creditors.