# UCO Bank vs. Garima Dugar

> NCLT judgment dated 9 Oct 2025. Citation: TCN-2025-NCLT-01566. UCO Bank filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 9 Oct 2025
- **Citation:** TCN-2025-NCLT-01566
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/uco-bank-vs-garima-dugar-657b3142

## Summary

### Background

UCO Bank filed an application under Section 95 of the Insolvency and Bankruptcy Code, 2016, against Mrs. Garima Dugar, the personal guarantor to M/s Feather and Flute Fintrade Private Limited, for default in repayment of a financial debt amounting to Rs. 1,31,52,295.92.

## Facts

UCO Bank, Rehabari Branch, filed a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016 against Garima Dugar.

The petition relates to a default in repayment of Rs. 1,31,52,295.92 as on 31.12.2024.

Garima Dugar is the Personal Guarantor to M/s Feather and Flute Fintrade Private Limited, the Corporate Debtor.

The Corporate Debtor availed credit facilities from UCO Bank, including term loans and cash credit facilities.

Corporate Debtor issued Demand Promissory Notes in favour of the Financial Creditor.

The loan accounts of the Corporate Debtor were classified as Non-Performing Asset (NPA) on 25.05.2022.

The Financial Creditor issued a demand notice on 30.06.2022, under Section 13(2) of SARFAESI Act, 2002.

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## Issues and analysis

### Issue 1: Whether the resignation of the Personal Guarantor from the directorship of the Corporate Debtor …

**Ratio:** The liability of a guarantor is co-extensive with that of the principal debtor under

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**Reasoning:** The mere resignation of the guarantor from the directorship of the corporate debtor does

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**Interpretation:** The Personal Guarantor continues to remain liable for the loan facilities

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**Application:** The NCLT held that Garima Dugar's resignation from directorship does not, in

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## Parties

- **Judges:** Rammurti Ku…; Yogendra Kumar…
- **Appellants:** UCO B…
- **Respondents:** M/s Feather and…; Garima…
- **Other parties:** Insolvency and…; Personal Gu…; +4 more

## Timeline

- **2020-07-15 — Sanction Lett…**: Financial Creditor sanctioned a term…
- **2020-09-04 — Deed of Hypothecation…**: Corporate Debtor signed and executed a…

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