Virigineni Anjaiah Vs Pridhvi Asset Reconstruction and Securitization Company Ltd. (NCLAT Chennai)
The case of Virigineni Anjaiah Vs Prithvi Asset Reconstruction and Securitization Company Ltd. (NCLAT Chennai) revolves around an appeal filed under section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC) against an order passed by the Adjudicating Authority (AA) / National Company Law Tribunal (NCLT), Hyderabad. The AA had admitted the Corporate Debtor (CD) into Corporate Insolvency Resolution Process (CIRP) based on the application made by the Financial Creditor (FC), Prithvi Asset Reconstruction and Securitization Company Pvt. Ltd. (PARAS).
The key points of contention revolve around the classification of the FC as a financial creditor, the bar of limitation on the application, and the validity of the decree obtained by PARAS from the Debt Recovery Tribunal (DRT), Hyderabad.
The appellant, Mr. Virigineni Anjaiah, suspended director of the CD, argues that the application by PARAS is barred by limitation as the debt was classified as Non-Performing Asset (NPA) in 2015, and the limitation period expired in 2018. He also contests the classification of PARAS as a financial creditor under the IBC, citing previous judgments of the National Company Law Appellate Tribunal (NCLAT) which held that a decree holder is not necessarily a financial creditor.
