UCO Bank Vs Mallika Barooah (PG) (NCLT Guwahati)
The National Company Law Tribunal (NCLT), Guwahati Bench, considered an application filed by a financial creditor under Section 95 of the Insolvency and Bankruptcy Code, 2016 (IBC), seeking initiation of insolvency resolution proceedings against an individual alleged to be a personal guarantor to a corporate debtor. The application was based on an alleged default amounting to ₹148.67 crore as on 20 January 2025.
The financial creditor submitted that the corporate debtor had availed multiple cash-credit facilities from time to time under various sanction letters. According to the creditor, the respondent had executed a Letter of Guarantee dated 20 May 2008 in relation to the initial cash-credit facility of ₹145 lakh. The creditor further referred to subsequent recovery proceedings, including proceedings before the Debt Recovery Tribunal (DRT), a compromise arrangement recorded in 2018, issuance of a recovery certificate dated 11 April 2018, and proposals seeking extension of time for repayment.
The creditor asserted that a demand notice under Rule 7(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, was issued on 9 April 2025 requiring repayment of the outstanding dues. Upon failure to recover the amount, the creditor sought admission of the application under Section 95 of the IBC.
