# In the matter of Pridhvi Assets Reconstruction and Securitization Company Ltd Vs. Kollipara Sravanthi (Sri Pavana Keerthi Hotels India Pvt Ltd), CP (IB)/193/95/HDB/2022

> NCLT judgment dated 2023-06-14. Citation: TCN-2023-NCLT-02953. The case involves a petition filed by Pridhvi Asset Reconstruction and Securitisation Company…

- **Court:** NCLT
- **Order date:** 14 Jun 2023
- **Citation:** TCN-2023-NCLT-02953
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pridhvi-assets-reconstruction-and-securitization-company-ltd-vs-kollipara-sravan-e4f8b339

## Summary

### Background

The case involves a petition filed by Pridhvi Asset Reconstruction and Securitisation Company Ltd, the Financial Creditor, against Mrs. Kollipara Sravanthi, the Personal Guarantor, and Sri Pavana Keerthi Hotels India Private Limited, the 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 Financial Creditor sought initiation of the Insolvency Resolution Process (IRP) against the Personal Guarantor due to the Corporate Debtor's failure to meet its financial obligations. The Corporate Debtor had availed a working capital facility from the erstwhile

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## Facts

Pridhvi Asset Reconstruction and Securitisation Company Ltd, the Financial Creditor, filed a petition against Mrs. Kollipara Sravanthi, the Personal Guarantor, and Sri Pavana Keerthi Hotels India Private Limited, the Corporate Debtor. The Financial Creditor had sanctioned a working capital facility to the Corporate Debtor, with Mrs. Kollipara Sravanthi acting as the personal guarantor. The Corporate Debtor defaulted on its obligations, leading to the loan account being classified as NPA on 29.09.2015. The erstwhile Andhra Bank, the original lender, filed OA 403 of 2017 before the DRT Hyderabad-1, claiming Rs.32,19,88,213/-. The DRT granted a decree on 09.02.2019, and a recovery certificate was issued on 09.07.2019. The debt portfolio was assigned to the Financial

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## Issues and analysis

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

**Ratio:** The ratio is based on the interpretation of Section 100 of the IBC, 2016, which allows

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**Reasoning:** The Tribunal reasoned that the Personal Guarantor failed to repay the amount due despite

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**Interpretation:** The interpretation involves understanding the scope and applicability of

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**Application:** The ratio and reasoning were applied to the specific facts of the case,

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## Parties

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

## Timeline

- **2014-09-20 — Sanction…**: The Petitioner sanctioned working capital facility consisting of Cash Credit facility…
- **2014-10-20 — Composite Deed of…**: Corporate debtor executed Composite Deed…

## 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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