# In the matter of Virigneni Anjaiah & Ors. vs. Pridhvi Asset Reconstruction and Securitization Company Ltd. & Ors.

> NCLAT judgment dated 2025-07-24. Citation: TCN-2025-NCLAT-00416. The appeals challenge orders admitting proceedings under Section 95 of the I&B Code against…

- **Court:** NCLAT
- **Order date:** 24 Jul 2025
- **Citation:** TCN-2025-NCLAT-00416
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-chennai/virigneni-anjaiah-ors-vs-pridhvi-asset-reconstruction-and-securitization-company-956cfe91

## Summary

### Background

The appeals challenge orders admitting proceedings under Section 95 of the I&B Code against the Appellants, who are Personal Guarantors, based on a debt owed by the Corporate Debtor.

## Facts

A Personal Guarantee bond was executed by the Appellant on 06.10.2014, ensuring the advancement of a Loan to the Corporate Debtor.

The Corporate Debtor was declared as NPA (Non-Performing Asset) on 13.10.2015.

Demand notice under Section 13 (2) of the SARFAESI Act, 2002, was issued on 01.11.2015.

The Debt Recovery Certificate (DRC No. 176 of 2019) was issued on 09.07.2019.

A demand notice was issued by the Recovery Officer, DRT on 22.07.2020.

A demand notice under Rule 7 was issued on 29.12.2021, raising a demand with regard to the amount due to be paid by the Appellants.

Respondent No. 1 filed an application under Section 95 of the I & B Code, 2016, on 05.07.2023.

The Adjudicating Authority dismissed the proceedings on 25.05.2023, due to non-service of the demand notice.

…

## Issues and analysis

### Issue 1: Whether the proceedings against the …

**Ratio:** The recovery certificate gives rise to a fresh cause of action, and the limitation period

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**Reasoning:** The Hon'ble Apex Court in Dena Bank Vs. C. Shivakumar Reddy held that the recovery

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**Interpretation:** The limitation period is to be computed from the date of the recovery

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**Application:** Since the application was filed on 05.07.2023, and the recovery certificate was

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## Parties

- **Judges:** Sharad Kumar…; Jatindranat…
- **Appellants:** Virigneni A…; Kadiyala Su…
- **Respondents:** Pavana Keerthi…; Pridhvi Asset…
- **Other parties:** Govada Venkata…
- **Advocates:** Pogulakonda…; Surya Teja SS…

## Timeline

- **2014-10-06 — Personal Guara…**: A Personal Guarantee bond was…
- **2015-10-13 — NPA Decla…**: The Corporate Debtor was declared…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95 — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

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