# In the matter of UCO Bank Flagship Corporate Branch vs. Navin Kumar Jain & Ors.

> NCLAT judgment dated 2022-05-27. Citation: TCN-2022-NCLAT-00688. UCO Bank filed appeals challenging orders by the Adjudicating Authority (NCLT, Kolkata Bench)…

- **Court:** NCLAT
- **Order date:** 27 May 2022
- **Citation:** TCN-2022-NCLAT-00688
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/uco-bank-flagship-corporate-branch-vs-navin-kumar-jain-ors-57477d32

## Summary

### Background

UCO Bank filed appeals challenging orders by the Adjudicating Authority (NCLT, Kolkata Bench) rejecting applications to initiate CIRP under Section 95(1) of the IBC against personal guarantors. The Adjudicating Authority rejected the applications because the principal borrower was not under CIRP or liquidation.

## Facts

UCO Bank advanced financial facilities to M/s. Sri Munisuvrata Agri International Limited.

Navin Kumar Jain, Director of the Corporate Debtor, stood as Personal Guarantor.

UCO Bank filed an application under Section 95(1) of the IBC to recover dues of Rs. 97,76,57,936/- as on 31.03.2021.

The Adjudicating Authority rejected the application on the ground that the principal borrower was not under CIRP or liquidation.

The NCLAT considered the interpretation of Section 60 of the IBC regarding the jurisdiction of the Adjudicating Authority in relation to personal guarantors.

## Issues and analysis

### Issue 1: Whether the pendency of corporate insolvency resolution process or liquidation proceedings against …

**Ratio:** Section 60(1) is a substantive provision providing for who shall be the Adjudicating

…

**Reasoning:** The use of expression “without prejudice to sub-section (1)” under sub-section (2) makes

…

**Interpretation:** Section 60(2) has been engrafted to cover the specific situation and the

…

**Application:** The Adjudicating Authority erred in holding that since no CIRP or Liquidation

…

## Parties

- **Judges:** Ashok Bh…; Shreesha…; +1 more
- **Appellants:** UCO Bank Flagship…; UCO B…
- **Respondents:** Munisuvrata Agri…; Navin Kuma…; +11 more
- **Advocates:** Ashish Cho…; Santosh Kum…; +9 more

## Timeline

- **2021-03-31 — Dues…**: Dues of Rs.97,76,57,936/…
- **2021-04-22 — Application…**: Application under Section 95(1) as per Rule 7(2) of the Insolvency and Bankruptcy Rules,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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