# UCO Bank vs. M/S SHAIVLINI IMPEX PRIVATE LIMITED

> NCLT judgment dated 2026-05-06. Citation: TCN-2026-NCLT-00534. UCO Bank, as a Financial Creditor, filed an application under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 6 May 2026
- **Citation:** TCN-2026-NCLT-00534
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/uco-bank-vs-ms-shaivlini-impex-private-limited-vf1jn

## Summary

### Background

UCO Bank, as a Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s Shaivlini Impex Private Limited, the Corporate Debtor. The Corporate Debtor acted as a Corporate Guarantor for M/s Nandini Impex Private Limited, the Principal Borrower. Credit facilities were sanctioned to the Principal Borrower in 2001, renewed/restructured in 2012. The Principal Borrower's loan account was classified as a Non-Performing Asset (NPA) on 30.09.2012, with a total debt of Rs. 4,52,08,22,525.31/- due as of 31.10.2020. A notice under Section 13(2) of the SARFAESI Act was issued to both the Principal Borrower and the Corporate Debtor on 01.10.2020. The CIRP of the Principal Borrower was already admitted on 20.09.2022. The

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## Facts

UCO Bank (Financial Creditor) filed a Company Petition under Section 7 of the IBC, 2016, against M/s Shaivlini Impex Pvt. Ltd. (Corporate Debtor).

M/s Shaivlini Impex Pvt. Ltd. is a Corporate Guarantor for M/s Nandini Impex Pvt. Ltd., the Principal Borrower.

Credit facilities were sanctioned to the Principal Borrower since 2001 and were last renewed/restructured on 28.06.2012 and 28.09.2012.

The Corporate Debtor executed a Letter/Deed of Guarantee dated 28.09.2012 in favour of the Financial Creditor.

The loan account of the Principal Borrower was classified as Non-Performing Asset (NPA) on 30.09.2012.

The total debt due and payable as on 31.10.2020 is Rs. 4,52,08,22,525.31/-.

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## Issues and analysis

### Issue 1: Whether the Corporate Guarantor's liability is co-extensive with the Principal Borrower, allowing …

**Ratio:** The liability of a surety (guarantor) is co-extensive with that of the principal debtor,

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**Reasoning:** The Corporate Debtor, M/s Shaivlini Impex Pvt. Ltd., executed a Letter/Deed of Guarantee

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**Interpretation:** The term 'co-extensive' implies that the guarantor's liability is as broad and

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**Application:** Since the Principal Borrower, M/s Nandini Impex Pvt. Ltd., defaulted, the

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## Parties

- **Judges:** BIDISHA BA…; Cmde Siddharth…
- **Appellants:** UCO B…
- **Respondents:** M/S SHAIVLINI…
- **Other parties:** Committee of…; Directors and…; +1 more
- **Advocates:** Rahul A…; Aditya G…; +7 more

## Timeline

- **2001 — Credit Facilities…**: Credit facilities were sanctioned to the Principal Borrower (M/s Nandini Impex Private…
- **2012-06-28 — Credit Facilities…**: Credit facilities were first…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(12) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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