# Amit Bhatnagar & Sumit Bhatnagar vs. UCO Bank & CS & IP Amrish Gandhi & Indian Overseas Bank

> NCLAT judgment dated 2026-05-12. Citation: TCN-2026-NCLAT-00192. Two appeals were filed by Amit Bhatnagar and Sumit Bhatnagar, personal guarantors of M/s…

- **Court:** NCLAT
- **Order date:** 12 May 2026
- **Citation:** TCN-2026-NCLAT-00192
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/amit-bhatnagar-sumit-bhatnagar-vs-uco-bank-cs-ip-amrish-gandhi-indian-overseas-b-dqs88

## Summary

### Background

Two appeals were filed by Amit Bhatnagar and Sumit Bhatnagar, personal guarantors of M/s Diamond Power Transformers Ltd. (Corporate Debtor) and Diamond Power Infrastructure Ltd. (Corporate Guarantor), against an NCLT order dated 23.10.2024. The NCLT had admitted applications under Section 95 of the IBC, filed by Consortium Banks (UCO Bank and Indian Overseas Bank), seeking initiation of insolvency resolution against the personal guarantors for a default amount of Rs. 122.19 Crores. The appellants contended that the debt was extinguished due to the approved Resolution Plan of the Corporate Guarantor (DPIL) and that the claims were barred by limitation.

## Facts

Amit Bhatnagar and Sumit Bhatnagar are Personal Guarantors of M/s Diamond Power Transformers Ltd. (DPTL).

Diamond Power Infrastructure Ltd. (DPIL) is the Corporate Guarantor to DPTL.

Consortium Banks (UCO Bank and Indian Overseas Bank) extended a credit facility of Rs. 40 crores to DPTL on 15.10.2011, which was renewed on 29.06.2013.

A Consortium Agreement dated 31.03.2015 was executed for an aggregate credit facility of Rs. 114.60 crores.

The Appellants executed a Deed of Guarantee dated 31.03.2015 in favour of the Consortium Banks.

The Appellants contended that the Consortium Banks failed to disburse Rs. 24 crores, which constituted a material alteration and discharged them under Section 133 of the Indian Contract Act, 1872.

DPTL's account was declared NPA on 30.07.2016.

…

## Issues and analysis

### Issue 1: Whether the claims of the Consortium Banks against the personal guarantors are barred by the law of …

**Ratio:** The period of limitation for initiating proceedings against personal guarantors can be

…

**Reasoning:** The Corporate Debtor (DPTL) was declared NPA on 30.07.2016, and personal guarantees were

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**Interpretation:** A judicial order like a DRT recovery certificate can reset or extend the

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**Application:** The NCLAT applied these principles to find that the applications filed by the

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## Parties

- **Judges:** Mohammad Faiz…; Naresh Sa…
- **Appellants:** Amit Bhat…; Sumit Bha…
- **Respondents:** M/s Diamond Power…; UCO B…; +2 more
- **Advocates:** Malak B…; Neeha N…; +5 more

## Timeline

- **2011-10-15 — Credit Facility…**: Consortium Banks extended a credit facility of Rs. 40 crores to M/s Diamond Power…
- **2013-06-29 — Credit Facilit…**: The credit facility to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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