# In the matter of Pridhvi Assets Reconstruction and Securitization Company Ltd Vs. Kollipara Ravi Kumar (Sri Pavana Keerthi Hotels India Pvt Ltd), CP (IB)/195/95/HDB/2022

> NCLT judgment dated 2023-06-14. Citation: TCN-2023-NCLT-02955. The case involves a petition filed by Pridhvi Asset Reconstruction and Securitisation Company…

- **Court:** NCLT
- **Order date:** 14 Jun 2023
- **Citation:** TCN-2023-NCLT-02955
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pridhvi-assets-reconstruction-and-securitization-company-ltd-vs-kollipara-ravi-k-72179330

## Summary

### Background

The case involves a petition filed by Pridhvi Asset Reconstruction and Securitisation Company Ltd. against Mr. Kollipara Ravi Kumar, the personal guarantor of M/s. Sri Pavana Keerthi Hotels India Private Limited (Corporate Debtor), under Section 95 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtor) Rules, 2019. The petitioner sought initiation of the Insolvency Resolution Process (IRP) against the personal guarantor due to the corporate debtor's failure to honor its obligations under a Composite Deed of Hypothecation. The corporate debtor's account was declared NPA on 29.09.2015. The petitioner, as

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## Facts

Pridhvi Asset Reconstruction and Securitisation Company Ltd. (Petitioner/Financial Creditor) filed a petition against Mr. Kollipara Ravi Kumar (Respondent No.1/Personal Guarantor) under Section 95 of the Insolvency and Bankruptcy Code, 2016. The petition relates to the personal guarantee provided by Mr. Kumar for the debts of M/s. Sri Pavana Keerthi Hotels India Private Limited (Respondent No.2/Corporate Debtor). The Petitioner had sanctioned a working capital facility to the Corporate Debtor, with Mr. Kumar acting as the personal guarantor. The Corporate Debtor defaulted on its obligations, leading to its account being classified as NPA on 29.09.2015. The Petitioner filed OA 403 of 2017 before the DRT Hyderabad-1, which granted a decree on 09.02.2019 along with a

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## Issues and analysis

### Issue 1: Whether an Insolvency Resolution Process can be ordered against the Personal Guarantor under …

**Ratio:** Section 100 of the IBC, 2016 allows for the admission of a petition for initiating the

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**Reasoning:** The NCLT considered the report of the Resolution Professional, which indicated that the

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**Interpretation:** Section 95 read with Section 100 of the IBC provides a mechanism for initiating

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**Application:** In this case, the NCLT applied the provisions of Section 95 and Section 100 of

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Pridhvi Asset…; PRIDHVI ASSET…
- **Respondents:** Pavana Keerthi…; Kollipara Ravi…

## Timeline

- **2014-09-20 — Sanction…**: Petitioner sanctioned working…
- **2014-10-20 — Composite Deed of…**: Executed between Financial…

## 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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