# In the matter of Hotel Gaudavan Private Limited

> NCLT judgment dated 2017-08-16. Citation: TCN-2017-NCLT-00612. The case involves an application filed by the erstwhile management of the Corporate Debtor,…

- **Court:** NCLT
- **Order date:** 16 Aug 2017
- **Citation:** TCN-2017-NCLT-00612
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hotel-gaudavan-private-limited-489a8bf8

## Summary

### Background

The case involves an application filed by the erstwhile management of the Corporate Debtor, Hotel Gaudavan Private Limited, under Section 74(2) and Section 65 of the Insolvency & Bankruptcy Code, 2016, seeking an order against the Insolvency Professional. The Financial Creditor, Alchemist Asset Reconstruction Company Ltd., initiated the Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Code, which was admitted by the Tribunal on 31.03.2017. The admission order included a moratorium under Section 14. The erstwhile management challenged the Tribunal's order before the High Court of Rajasthan, which upheld the order. The management also initiated arbitration proceedings, which were stayed by the Supreme Court. The management then filed an appeal

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## Facts

Alchemist Asset Reconstruction Company Ltd. initiated CIRP against Hotel Gaudavan Private Limited. The NCLT admitted the application on 31.03.2017, imposing a moratorium. The erstwhile management of Hotel Gaudavan Private Limited, led by Harendra Singh Rathore, filed an application alleging malafide against the Insolvency Professional, Arunava Sikdar, claiming a misleading advertisement regarding the last date for filing claims. The advertisement, published on 01.04.2017, allegedly contained a typographical error stating the last date as 14.02.2017, while the correct date was 14.04.2017. The Insolvency Professional relied on public notices in the Times of India and Dainik Bhaskar, which correctly stated the last date. The erstwhile management had previously challenged

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## Issues and analysis

### Issue 1: Whether the application filed by the erstwhile management of the Corporate Debtor is maintainable …

**Ratio:** After the initiation of the insolvency process and the appointment of an Insolvency

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**Reasoning:** The Tribunal reasoned that once the insolvency process is initiated, the management of

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**Interpretation:** Section 60(5) of the IBC provides the National Company Law Tribunal with

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**Application:** In this case, the Tribunal found that the application filed by the erstwhile

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## Parties

- **Judges:** CHIEF JUSTICE…; R. VARADH…
- **Appellants:** Harendra Singh…
- **Respondents:** Hotel Gaudavan…; ArunavaS…

## Timeline

- **2017-03-09 — Financial Creditor files application under…**: Alchemist Asset Reconstruction Company Ltd. filed an application under Section 7 of the…
- **2017-03-31 — Tribunal admits C.P.…**: The Tribunal admitted the Corporate Insolvency Resolution Process (CIRP) application,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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