Union Bank of India Files Caveat Petition Against Kallam Textiles Ltd. Over Unpaid Loan Facilities

Union Bank of India has filed a caveat petition in the High Court of Telangana at Hyderabad against Kallam Textiles Ltd. due to the latter's failure to repay loan facilities. The bank has classified the account as non-performing asset (NPA) on 29-06-2023 and has issued a demand notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act), 2002. The bank has also taken possession of the secured properties by issuing a possession notice dated 12-09-2025 and has issued a sale/auction notice dated 06-02-2026 for the sale of the secured properties situated in the State of Telangana. The bank fears that the respondents may approach the High Court challenging the sale/auction notice and has sought a notice from the court in case such a petition is filed.