# UCO Bank vs. Subrata Das & Ors.

> NCLAT judgment dated 2026-07-14. Citation: TCN-2026-NCLAT-00222. UCO Bank, a Financial Creditor, filed two appeals against orders of the National Company Law…

- **Court:** NCLAT
- **Order date:** 14 Jul 2026
- **Citation:** TCN-2026-NCLAT-00222
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/uco-bank-vs-subrata-das-ors-k4u4t

## Summary

### Background

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).

## Facts

UCO Bank, a Financial Creditor, sanctioned a Cash Credit Facility of Rs. 250 lakhs to M/s Haridra Vintrade Private Limited (Principal Borrower) on 15.07.2022, following an application on 06.06.2022.

Subrata Das and Rahul Gupta, Directors of M/s Haridra Vintrade Private Limited, executed Personal Guarantees for the said credit facility.

The loan account of M/s Haridra Vintrade Private Limited became irregular and was classified as a Non-Performing Asset (NPA) on 30.03.2023.

UCO Bank issued Notices of Demand invoking the Personal Guarantees and subsequently served a Demand Notice in Form B on the Respondents on 20.06.2024.

Despite service, the Respondents failed to provide any reply or discharge the outstanding liability.

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can proceed against a Personal Guarantor of the Corporate Debtor …

**Ratio:** A Financial Creditor has the legal prerogative to initiate insolvency proceedings against

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**Reasoning:** The NCLAT referenced Supreme Court judgments (Laxmi Pat Surana, State Bank of India v. V.

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**Interpretation:** The IBC, read with the Indian Contract Act, grants financial creditors

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**Application:** In the present case, UCO Bank, as a Financial Creditor, was entitled to

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## Parties

- **Judges:** Mohammad Faiz…; Naresh Sa…
- **Appellants:** UCO B…
- **Respondents:** M/s. Haridra…; Subrata…; +2 more
- **Advocates:** Sarfaraz…; Mirza Ami…; +1 more

## Timeline

- **2022-06-06 — Application for Cash…**: Principal Borrower, M/s Haridra Vintrade Private Limited, approached UCO Bank seeking a…
- **2022-07-15 — Sanction of Cash Credit…**: UCO Bank sanctioned a Cash Credit Facility of Rs. 250 lakhs to M/s Haridra Vintrade…

## 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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