# In the matter of Upkar Kaur vs. Gagan Gulati (RP) and Anr.

> NCLAT judgment dated 2025-11-27. Citation: TCN-2025-NCLAT-00622. This appeal arises from an order dated 21.08.2024 passed by the NCLT, New Delhi Bench-II,…

- **Court:** NCLAT
- **Order date:** 27 Nov 2025
- **Citation:** TCN-2025-NCLAT-00622
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/upkar-kaur-vs-gagan-gulati-38cc3832

## Summary

### Background

This appeal arises from an order dated 21.08.2024 passed by the NCLT, New Delhi Bench-II, initiating Personal Insolvency Resolution Process (PIRP) against Ms. Upkar Kaur, a personal guarantor to M/s Jagtar Singh & Sons Hydraulics Pvt. Ltd., for a default of Rs. 4,00,76,605/- as on 01.12.2021.

## Facts

M/s Jagtar Singh & Sons Hydraulics Pvt. Ltd. (Corporate Debtor) approached M/s Intec Capital Limited (Financial Creditor) for credit facilities.

Two loan agreements were executed: one in 2013 for Rs. 3,18,00,000/- and another in 2016 for Rs. 41,32,383/-.

Ms. Upkar Kaur acted as a personal guarantor for the first loan.

The Corporate Debtor defaulted on payments, leading to the SBI account being frozen in July 2016.

A loan recall notice cum Arbitration Notice was issued on 18.07.2017.

CIRP proceedings were initiated against the Corporate Debtor under Section 7 of the IBC and admitted on 03.09.2019.

A settlement agreement was reached on 02.12.2019, with Justice (retd.) A.K. Sikri as Mediator.

…

## Issues and analysis

### Issue 1: Whether the application filed under Section 95 of the Insolvency and Bankruptcy Code, 2016, against …

**Ratio:** The application was

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**Reasoning:** The Corporate Debtor continued to deal with the creditor even after 2017, including

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**Interpretation:** The limitation period is extended by acknowledgments of debt and part-payments

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**Application:** The payments made by the Corporate Debtor in 2020 and 2021 extended the

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## Parties

- **Judges:** Indevar P…; N. Sesha…; +1 more
- **Appellants:** Upkar…
- **Respondents:** M/s Jagtar Singh…; Gagan G…; +1 more
- **Other parties:** Sh. Jagtar…; Sukhwant…
- **Advocates:** Rakesh K.…; Hitesh C…; +3 more

## Timeline

- **2013-03-22 — Sanction…**: Financial Creditor…
- **2013-03-28 — Loan Agre…**: Loan agreement bearing…

## Legal provisions

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

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