# S. Sephulohniam vs. Hotel Radhaprasad Pvt. Ltd.

> NCLT judgment dated 2026-09-08. Citation: TCN-2026-NCLT-00968. S. Sephulohniam (Financial Creditor) filed a petition under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 8 Sept 2026
- **Citation:** TCN-2026-NCLT-00968
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/s-sephulohniam-vs-hotel-radhaprasad-pvt-ltd-61mhk

## Summary

### Background

S. Sephulohniam (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Hotel Radhaprasad Pvt. Ltd. (Corporate Guarantor) to initiate Corporate Insolvency Resolution Process (CIRP). The petition was based on a Guarantee Agreement dated 16.07.2018 for a loan of Rs. 12 crores extended to Hotel Radha Prasad, a partnership firm (Principal Borrower). The total outstanding debt was later amended to Rs. 15,30,00,000/-, with the date of default stated as 06.08.2024. The Corporate Guarantor raised several objections, including that the petition was not maintainable against a partnership firm, the Guarantee Deed was defective due to uncertainty and lack of proper corporate authorization, payments were made from personal

…

## Facts

S. Sephulohniam (Financial Creditor) filed a petition under Section 7 of IBC, 2016, against Hotel Radhaprasad Private Limited (Corporate Debtor/Guarantor).

The petition seeks to initiate Corporate Insolvency Resolution Process (CIRP).

A loan of Rs. 12,00,00,000/- (Rupees Twelve Crores Only) was extended to Hotel Radha Prasad, a partnership firm (Principal Borrower).

A Guarantee Agreement dated 16.07.2018 was executed between S. Sephulohniam, Kumaravel Sepulohniam (Lenders) and M/s. Hotel Radhaprasad (Principal Borrower), R. Radha, R.R. Prasad, and Hotel Radhaprasad Private Limited (Guarantors).

The total outstanding debt was amended to Rs. 15,30,00,000/- (Rupees Fifteen Crores Thirty Lakhs Only) via an order dated 05.06.2026 in IA(IBC)/857(CHE)/2026.

…

## Issues and analysis

### Issue 1: Whether the present petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 …

**Ratio:** A Section 7 IBC petition is maintainable against a corporate guarantor for a loan availed

…

**Reasoning:** Section 60(1) of IBC grants NCLT jurisdiction over corporate debtors and personal

…

**Interpretation:** The terms "corporate debtor" and "financial debt" under IBC

…

**Application:** The petition against Hotel Radhaprasad Pvt. Ltd. (Corporate Guarantor) for the

…

## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** S. Sephul…
- **Respondents:** Hotel Radhaprasad…
- **Other parties:** R. Ra…; P. Eswaram…; +1 more
- **Advocates:** Sangamithra…; Shri. Mada…; +6 more

## Timeline

- **2018-07-16 — Guarantee Agreement…**: A Guarantee Agreement was executed between the lenders and the Principal…
- **2018-07-16 — Loan Disbursem…**: Loan amount of Rs. 12,00,00,000/-…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chennai/s-sephulohniam-vs-hotel-radhaprasad-pvt-ltd-61mhk