# In the matter of Sri Pavana Keerti Hotels India Private Limited

> NCLT judgment dated 2025-03-04. Citation: TCN-2025-NCLT-00400. This case involves an application (IA 250/2024) filed by the Resolution Professional (RP) of…

- **Court:** NCLT
- **Order date:** 4 Mar 2025
- **Citation:** TCN-2025-NCLT-00400
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sri-pavana-keerti-hotels-india-private-limited-0783f937

## Summary

### Background

This case involves an application (IA 250/2024) filed by the Resolution Professional (RP) of Sri Pavana Keerthi Hotels India Private Limited (Corporate Debtor) under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 (IBC). The RP sought reliefs against Greater Hyderabad Municipal Corporation (GHMC), the respondent, regarding property tax demands. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) on 2022-04-11. The GHMC issued demand notices for property tax arrears, including pre-CIRP and CIRP periods. The RP argued that the GHMC's actions violated the moratorium under Section 14 of the IBC.

## Facts

Sri Pavana Keerthi Hotels India Private Limited (Corporate Debtor) was admitted into CIRP on 2022-04-11, based on a petition filed by Pridhvi Asset Reconstruction and Securitisation Company Limited (Financial Creditor). The Resolution Professional (RP) was appointed and later confirmed by the Committee of Creditors (CoC). During the CIRP, Greater Hyderabad Municipal Corporation (GHMC) issued demand notices for property tax arrears, including both pre-CIRP and CIRP periods. The total arrears were Rs. 38,54,691/-, with Rs. 12,24,704/- pertaining to the CIRP period and Rs. 26,29,987/- to the pre-CIRP period. The GHMC also informed the Corporate Debtor that the hotel was operating without a trade license, violating GHMC regulations. The RP sought permission to make partial

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## Issues and analysis

### Issue 1: Whether Greater Hyderabad Municipal Corporation can initiate recovery proceedings of property tax …

**Ratio:** Section 14 of the IBC imposes a moratorium on the initiation or continuation of legal

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**Reasoning:** The court reasoned that allowing GHMC to initiate recovery proceedings would violate the

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**Interpretation:** Section 14 of the IBC is interpreted to create a shield against pecuniary

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**Application:** Applying the ratio to the facts, the court held that GHMC's demand notices and

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** M/s. Sri Pavana…
- **Respondents:** Pavana Keerthi…; The Commissioner,…
- **Advocates:** Ch. Srini…

## Timeline

- **2021-01-01 — CP (IB) IB/153/7/HDB/202…**: Filing of Corporate Insolvency…
- **2022-04-11 — Admission in…**: Corporate Debtor admitted into Corporate…

## 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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