Rakesh Kumar Jain Vs ADTV Communications Private Limited (NCLAT Delhi)
NCLAT Delhi held that a Decree Holder falls within the purview of the Financial Creditor under the Code, if the decree is based on a financial debt. Accordingly, dismissal of petition u/s. 7 of IBC not justified.
Facts- This is an Appeal u/s. 61 of the Insolvency and Bankruptcy Code, 2016, against the Order dated 24.04.2023 passed by Adjudicating Authority i.e., National Company Law Tribunal-III, New Delhi in the matter of Rakesh Kumar Jain vs ADTV Communications Pvt. Ltd. wherein Appellant is Financial Creditor.
The present Appeal, filed by Sh. Rakesh Kumar Jain is impugning the validity of the Order dated 24.04.2023 passed by Adjudicating Authority wherein the Tribunal dismissed the Petition of the Appellant for initiating the CIRP Proceedings against the Respondent Company.
Conclusion- It is now a settled law that a Decree Holder falls within the purview of the Financial Creditor under the Code, if the decree is based on a financial debt. Therefore, the Adjudicating Authority was incorrect in dismissing the Petition under Section 7 of the IBC on the ground that it is barred by limitation.
Held that the Appellant qualifies as a Financial Creditor, and the Petition under Section 7 of the IBC is within the period of limitation. The NCLT’s Order dated 24.04.2023 is thus erroneous and is liable to be set aside.
