# In the matter of Saptarishi Hotels Pvt. Ltd. IA (IBC) 549, 457, 413, 300 & 184-2022 & 455-2021 in CP(IB) No. 599-7-HDB-2019

> NCLT judgment dated 2022-10-19. Citation: TCN-2022-NCLT-00682. The case pertains to the Corporate Insolvency Resolution Process (CIRP) of Saptarishi Hotels…

- **Court:** NCLT
- **Order date:** 19 Oct 2022
- **Citation:** TCN-2022-NCLT-00682
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/saptarishi-hotels-pvt-ltd-ia-ibc-549-457-413-300-184-2022-455-2021-in-cpib-no-59-754df9ac

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) of Saptarishi Hotels Pvt Ltd initiated based on a petition filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The CIRP was triggered after the company faced financial difficulties, including stalled implementation of projects, termination of lease agreements, and declaration as a Non-Performing Asset (NPA) by lenders. Despite efforts to revive the company through resolution plans, the Committee of Creditors (CoC) ultimately decided to recommend liquidation due to the lack of viable resolution plans and other challenges.

## Facts

Saptarishi Hotels Pvt Ltd faced financial distress, leading to the initiation of CIRP based on a petition under Section 7 of the IBC. The implementation of the company's projects was stalled in 2016, and the National Institute of Tourism & Hospitality Management (NITHM) terminated its lease agreement. Lenders declared the company as an NPA, and several litigations were filed by lessors and suppliers. The CIRP was initiated on 18.01.2021. The Resolution Professional (RP) issued public announcements and invited resolution plans. Although several investors responded, no viable resolution plan was finalized. The promoters also appealed to NCLAT to set aside the CIRP admission order, claiming the debt was time-barred. The CoC decided to liquidate the company, and the

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## Issues and analysis

### Issue 1: Whether the existing resolution professional can be replaced as liquidator by another resolution …

**Ratio:** Section 34(1) of the IBC stipulates that the Resolution Professional (RP) acts as the

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**Reasoning:** The court considered Section 34 of the IBC, which allows the Adjudicating Authority to

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**Interpretation:** Section 34 of the IBC outlines the conditions under which a Resolution

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**Application:** In this case, the court found that the conditions for replacing the RP as

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **Appellants:** Punjab National…
- **Respondents:** Saptarishi Hotels…

## Timeline

- **2016-01-01 — Implementation…**: Implementation of Saptarishi…
- **2021-01-18 — CIRP Init…**: Tribunal admitted the petition for CIRP in CP (IB) No.599/7/HDB/2019, allowing 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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