I have a statically linked library (SLL) which contains resources such as bitmaps, icons, cursors, etc. And functions in the SLL use those resources. And these exported functions are used by my executable. The problem which I was facing earlier was that the resources were not getting included in the executable while linking. However, I got that resolved thanks to another post in StackOverflow which suggested to link the generated .res file as well.
However, I wanted a cleaner solution - wherein I just link the .lib file and the resources get included as well. I did a dumpbin on the .lib file and it seems to contain all the resource data, but while linking those resources are not included in the final binary.
I suspect that lib.exe generates an output with a mangled resource section name (something like .rsrc$01 and .rsrc$02) which the linker does not recognize as a valid resource section name and hence the confusion.