# In the matter of Hotel Gaudavan Pvt. Ltd.

> NCLT judgment dated 2017-09-22. Citation: TCN-2017-NCLT-00376. The case involves an application filed by the Insolvency Resolution Professional (IRP) seeking…

- **Court:** NCLT
- **Order date:** 22 Sept 2017
- **Citation:** TCN-2017-NCLT-00376
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hotel-gaudavan-pvt-ltd-9ec6e3b3

## Summary

### Background

The case involves an application filed by the Insolvency Resolution Professional (IRP) seeking protection for actions taken in good faith and to quash a frivolous FIR (605/2017) lodged against him. The ex-management of the Corporate Debtor, Hotel Gaudavan Private Limited, has been actively attempting to obstruct the insolvency process by moving various forums. The Financial Creditor, Alchemist Asset Reconstruction Company, initiated proceedings under Section 7 of the IBC, 2016, which were admitted by the NCLT on 31.03.2017, appointing Mr. Arunava Sikdar as the IRP. The IRP faced resistance from the hotel management during the takeover, leading to further applications before the NCLT. The ex-management also filed a writ petition challenging the constitutional validity

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## Facts

Alchemist Asset Reconstruction Company initiated insolvency proceedings against Hotel Gaudavan Private Limited under Section 7 of the IBC, 2016. The NCLT admitted the petition on 31.03.2017 and appointed Arunava Sikdar as the IRP. The ex-management of Hotel Gaudavan, led by Harendra Singh Rathore and Lokendra Singh Rathore, resisted the IRP's takeover, including refusing cooperation and physically resisting access to the property. The ex-management also filed a writ petition challenging the constitutional validity of the IBC, which was dismissed. The IRP discovered that the ex-management had siphoned off approximately Rs. 123.60 Lacs after the commencement of CIRP. The Corporate Debtor attempted to initiate arbitration proceedings and appointed Pankaj Garg as an

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## Issues and analysis

### Issue 1: Whether the Insolvency Resolution Professional is entitled to protection for actions taken in good …

**Ratio:** Section 233 of the IBC provides protection to actions taken by the Insolvency Resolution

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**Reasoning:** The court reasoned that the Insolvency Resolution Professional should be protected for

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**Interpretation:** Section 233 aims to shield IRPs from frivolous litigation and harassment,

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**Application:** The court applied this principle to the IRP, recognizing that the FIR lodged

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## Parties

- **Judges:** M. M. K…; DeepaKr…
- **Appellants:** M/s Alchemist…
- **Respondents:** Hotel Gaudavan…; M/s Hotel…

## Timeline

- **2017-03-09 — Application filed under…**: The Financial Creditor filed an application under Section 7 of the IBC, 2016 against the…
- **2017-03-31 — Petition admitted by…**: The NCLT admitted the petition and appointed Mr. Arunava Sikdar as the IRP of the…

## 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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