NCLT Orders Liquidation of Sri Pavana Keerthi Hotels India Pvt Ltd After Failed Resolution Plan

Tribunal directs liquidation under IBC due to non-compliance by Successful Resolution Applicant, appointing Mr. Govada Venkata Subba Rao as Liquidator.

The National Company Law Tribunal (NCLT), Hyderabad Bench-1, has ordered the liquidation of M/s Sri Pavana Keerthi Hotels India Pvt Ltd under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. The decision comes after the failure of the Successful Resolution Applicant (SRA) to meet the essential conditions of the Letter of Intent (LoI), including the submission of a Performance Bank Guarantee (PBG).

In the judgment dated November 20, 2025, the Tribunal, comprising Shri Rajeev Bhardwaj, Member (Judicial), and Shri Sanjay Puri, Member (Technical), found that the Committee of Creditors (CoC), with a 100% voting share, unanimously resolved to liquidate the Corporate Debtor. This decision followed the absence of a viable resolution plan and the expiration of the Corporate Insolvency Resolution Process (CIRP) period.

The Corporate Debtor was initially admitted into CIRP on April 11, 2022. Despite several extensions and reminders, the SRA failed to comply with the mandatory requirements, leading to the forfeiture of an Earnest Money Deposit of Rs. 50 lakh and the cancellation of the LoI. The CoC's resolution to liquidate was based on the inability to implement the approved resolution plan.

Mr. Govada Venkata Subba Rao has been appointed as the Liquidator to conduct the proceedings in accordance with the Code. The liquidation process will involve attempts to sell the Corporate Debtor as a going concern, with an approved liquidation cost of Rs. 57.21 lakhs to be borne by the sole Financial Creditor.

The order signifies the cessation of the moratorium under Section 14 and transfers all powers of the Board of Directors and Key Managerial Personnel to the Liquidator. The Tribunal has directed all personnel and promoters of the Corporate Debtor to fully cooperate with the Liquidator as mandated under Section 19(2) of the Code.

This development marks a significant step in the insolvency proceedings, emphasizing strict adherence to the Code and the regulations set by the Insolvency and Bankruptcy Board of India (IBBI).

Bottom Line:

Insolvency and Bankruptcy Code, 2016 - Liquidation of Corporate Debtor ordered under Section 33(2) due to failure of Successful Resolution Applicant to comply with mandatory requirements and absence of viable resolution plan.

Statutory provision(s): Insolvency and Bankruptcy Code, 2016 Sections 33(2), 14, 19(2)

Pridhvi Asset Reconstruction & Securitisation Company Ltd v. M/s Sri Pavana Keerthi Hotels India Pvt Ltd, (NCLT)(Hyderabad Bench -1) : Law Finder Doc Id # 2812831