UCO Bank, a Financial Creditor, filed two appeals against orders of the National Company Law Tribunal (NCLT) that rejected its applications under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate insolvency resolution against personal guarantors, Subrata Das and Rahul Gupta. The NCLT had held that such applications were only maintainable if a Corporate Insolvency Resolution Process (CIRP) or liquidation proceeding was already pending or concluded against the Corporate Debtor, M/s Haridra Vintrade Private Limited. The personal guarantors had executed personal guarantees for a cash credit facility of Rs. 250 lakhs availed by the Corporate Debtor, which subsequently became a Non-Performing Asset (NPA).

UCO Bank, a Financial Creditor, filed two appeals against orders of the National Company Law Tribunal (NCLT) that rejected its applications under Section 95(1) of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate insolvency resolution against personal guarantors, Subrata Das and Rahul Gupta. The NCLT had held that such applications were only maintainable if a Corporate Insolvency Resolution Process (CIRP) or liquidation proceeding was already pending or concluded against the Corporate Debtor, M/s Haridra Vintrade Private Limited. The personal guarantors had executed personal guarantees for a cash credit facility of Rs. 250 lakhs availed by the Corporate Debtor, which subsequently became a Non-Performing Asset (NPA).