Authority: National Company Law Appellate Tribunal, Principal Bench, New Delhi
Order Date: 03.07.2026
Case Overview
UCO Bank (Appellant) has filed an appeal (Comp. App. (AT) (Ins) No. 994 of 2026) before the NCLAT against an order from the Adjudicating Authority (NCLT). The impugned order rejected the Bank's application filed under Section 95 of the Insolvency and Bankruptcy Code, 2016 against Respondent Souvanik Mal & Anr., who is a personal guarantor. The Adjudicating Authority rejected the application on the grounds that the Resolution Professional (RP) had not considered the date of invocation of the guarantee for the purpose of calculating the limitation period for filing the application.
The Bank, represented by its counsel, contends that this rejection was erroneous. It argues that its application was not barred by limitation, citing a notice dated 06.12.2021 through which the guarantee was invoked against the guarantors. The Bank also referred to balance sheets where an acknowledgment of the debt was reflected. The Bank further submitted that the RP had actually recommended the admission of the application and that the Personal Guarantor had not raised any objection regarding limitation.
The NCLAT bench, comprising Justice Ashok Bhushan and Barun Mitra, noted that the Appellant's submissions "need scrutiny" and decided to admit the appeal for a hearing.
Final Outcome
The NCLAT issued a formal notice to the Respondents. The tribunal directed the Respondents to file their reply within three weeks from the order date (03.07.2026). The Appellant (UCO Bank) is then permitted to file a rejoinder, if any, within two weeks after the reply is submitted. The appeal has been listed for the next hearing on 10.08.2026.
Topics: Insolvency, Banking Litigation