# India SME Asset Reconstruction Company Ltd. vs. Girivar Hotel and Resort Pvt. Ltd.

> NCLT judgment dated 2026-07-29. Citation: TCN-2026-NCLT-00653. India SME Asset Reconstruction Company Ltd. (Financial Creditor), an assignee of SIDBI, filed a…

- **Court:** NCLT
- **Order date:** 29 Jul 2026
- **Citation:** TCN-2026-NCLT-00653
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-jaipur/india-sme-asset-reconstruction-company-ltd-vs-girivar-hotel-and-resort-pvt-ltd-ol4do

## Summary

### Background

India SME Asset Reconstruction Company Ltd. (Financial Creditor), an assignee of SIDBI, filed a Section 7 IBC petition against Girivar Hotel and Resort Pvt. Ltd. (Corporate Debtor) due to a default in payment of Rs. 40,67,79,067.82/- as on 31.10.2025. The Corporate Debtor had availed multiple term loans from SIDBI between 2010 and 2013, which were secured by primary and collateral securities and personal guarantees. Despite several restructurings and One Time Settlement (OTS) proposals from the Corporate Debtor, the default persisted, leading to the account being declared NPA on 10.06.2014. Previous recovery actions included a SARFAESI demand notice and an Original Application before the DRT, Jaipur, which adjudicated the liability at Rs. 12.82 Crore with 8% interest

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## Facts

India SME Asset Reconstruction Company Ltd. (Financial Creditor) filed a Company Petition under Section 7 of the IBC, 2016, against Girivar Hotel and Resort Pvt. Ltd. (Corporate Debtor).

The petition seeks initiation of Corporate Insolvency Resolution Process (CIRP) due to a default in payment of Rs. 40,67,79,067.82/- as on 31.10.2025.

The Financial Creditor is an Asset Reconstruction Company (ARC) registered with the Reserve Bank of India and is an assignee of Small Industries Development Bank of India (SIDBI) via an Assignment Agreement dated 18.01.2018.

The Corporate Debtor, incorporated on 22.06.2006, availed multiple term loans from SIDBI: Rs. 5.50 Crores in 2010, Rs. 3.50 Crores in 2011, and Rs. 2.50 Crores in 2013, for setting up a hotel in Jaisalmer.

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## Issues and analysis

### Issue 1: Whether the present Company Petition under Section 7 of the IBC is maintainable when the alleged …

**Ratio:** Proceedings under Section 7 of the IBC can proceed in parallel with actions taken under

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**Reasoning:** The Adjudicating Authority cited NCLAT judgments in Mr. G. Sundaravadivelu v. Indian

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**Interpretation:** The IBC is a distinct legal framework focused on corporate insolvency

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**Application:** The Corporate Debtor's objections regarding the DRT's adjudication, the

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## Parties

- **Judges:** Reeta K…; Kavita Bha…
- **Appellants:** India SME Asset…
- **Respondents:** Girivar Hotel and…
- **Other parties:** Sh. Arvind Singh…; Small Industries…; +1 more
- **Advocates:** Shivangshu…; D. K. B…; +2 more

## Timeline

- **2006-06-22 — Incorporation of…**: Girivar Hotel and Resort Pvt. Ltd.…
- **2009-06-03 — Loan Appli…**: Corporate Debtor applied for a term…

## 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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