# In the matter of Visakha Prime Properties Constructions Limited I.A. No. 119 of 2021 in CP (IB) No. 82-7-AMR-2020

> NCLT judgment dated 2021-12-06. Citation: TCN-2021-NCLT-00262. The case involves an application (I.A.No.119 of 2021) filed by Visakha Prime Properties…

- **Court:** NCLT
- **Order date:** 6 Dec 2021
- **Citation:** TCN-2021-NCLT-00262
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/visakha-prime-properties-constructions-limited-ia-no-119-of-2021-in-cp-ib-no-82-d597babc

## Summary

### Background

The case involves an application (I.A.No.119 of 2021) filed by Visakha Prime Properties Constructions Limited (Corporate Debtor) under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking the dismissal of a Company Petition (CP (IB) No.82/7/AMR/2020) filed by ASREC (India) Limited (Financial Creditor) for the initiation of Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor argues that the Company Petition is barred by limitation, as the Corporate Debtor was declared as NPA on 30.06.2002, and the petition was filed on 05.06.2020, exceeding the three-year limitation period under Article 137 of the Limitation Act. The Financial Creditor contends that the limitation period should be extended due to the ongoing proceedings before the

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## Facts

M/s. Visakha Prime Properties Constructions Limited (Corporate Debtor) had a loan sanctioned by UCO Bank, which was later declared as NPA on 30.06.2002 due to default. UCO Bank filed O.A.No.36/2003 before the Debts Recovery Tribunal (DRT) to recover the dues. Subsequently, UCO Bank assigned the debt to M/s. ASREC (India) Limited (Financial Creditor). The DRT proceedings are still pending. The Corporate Debtor filed a Writ Petition before the Hon'ble High Court challenging the DRT orders, which was disposed of on 20.11.2019. The Financial Creditor filed a Company Petition (CP (IB) No.82/7/AMR/2020) under Section 7 of the IBC on 05.06.2020, seeking initiation of CIRP against the Corporate Debtor. The Corporate Debtor filed an application (I.A.No.119 of 2021) seeking

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## Issues and analysis

### Issue 1: Whether the Company Petition filed by the Financial Creditor is barred by limitation under Section …

**Ratio:** Article 137 of the Limitation Act applies to applications under Section 7 of the IBC, and

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**Reasoning:** The court reasoned that since the Corporate Debtor was declared as NPA on 30.06.2002 and

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**Interpretation:** The court interpreted Article 137 of the Limitation Act to apply to

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**Application:** The court applied the ratio to the facts of the case, noting that the petition

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## Parties

- **Judges:** TELAPROLU…
- **Respondents:** M/s. VISAKHA…; M/s. ASREC…
- **Advocates:** A.Ragh…; P.V.Marken…

## Timeline

- **2002-06-30 — Declaration…**: The Corporate Debtor was declared…
- **2003-01-01 — Filing of O.A.N…**: UCO Bank filed O.A.No.36/2003 before…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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