# 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-02942. The case involves a petition filed by Pridhvi Asset Reconstruction and Securitisation Company…

- **Court:** NCLT
- **Order date:** 14 Jun 2023
- **Citation:** TCN-2023-NCLT-02942
- **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-a7954a5a

## 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 seeks 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 classified as NPA, and the erstwhile Andhra Bank

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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) and 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. Kollipara Ravi 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. Andhra Bank, the original lender, filed OA 403 of 2017 before DRT Hyderabad-1, obtaining a decree and recovery certificate. Subsequently, Andhra Bank assigned the debt to the petitioner on 27.09.2017. The petitioner invoked the guarantee and issued 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 Insolvency and Bankruptcy Code, 2016 allows for the initiation of an

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

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**Interpretation:** The provision allows for the initiation of IRP against a personal guarantor

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**Application:** In this case, the corporate debtor defaulted, the personal guarantor failed to

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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 capital…
- **2014-10-20 — Composite Deed of…**: Executed between the 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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