Can anyone tell me how do I create the cut with a bend as highlighted in the image I uploaded?
Second image shows the part that I want to cut in.
Your swept cut should work
Modify both sketches
Your guide curve corner rad should be the same rad of your profile
It looks to me like you need a Swept-Cut. Create two sketches, one for the profile of the cut and another for the path for it to follow,
I tried that but it didn't work. Where the two lines meet, the cuts meet at a 45 deg angle and its not smooth (see image 1). And if i fillet the line that just doesnt connect the two cuts. Infact it cuts away everything leaving only two discs at the end points.
Is ther some other property I have to define in the swept cut feature?
Sweep path at inside edge of profile bend and add tiny radius (well within realistic manufacturing process).
If you can't figure it out - attach your *.sldprt file here.
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