NCLT Hyderabad Orders Liquidation Of Pavana Keerthi Hotels After SRA Fails To Furnish Bank Guarantee

The National Company Law Tribunal at Hyderabad has recently ordered the liquidation of Pavana Keerthi Hotels India Pvt. Ltd after observing that the successful resolution applicant failed to execute the resolution plan including the submission of a mandatory Performance Bank Guarantee (PBG). A coram of Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri in an order passed on 20 November 2025, observed: “We find that all legal requirements for ordering liquidation have been property satisfied, and there is no impediment to granting the relief sought. Considering the provisions of Section 33(2) of the insolvency and Bankruptcy Code, 2016, it is clear that there is no further possibility of resolving the Corporate Debtor through the CIRP.”In April 2022, insolvency proceedings were initiated against Keerthi Hotels. The National Company Law Appellate Tribunal at New Delhi later granted a stay that remained in force until May 2024. After the stay was lifted, the Resolution Professional resumed the process and placed a resolution plan before the Committee of Creditors, which was unanimously approved by the financial creditor, Pridhvi Asset Reconstruction and Securitisation Company Ltd. It was submitted that the successful resolution applicant stopped participating after the approval of the plan. The applicant did not attend further meetings of the Committee of Creditors, did not respond to reminders and did not furnish the required Performance Bank Guarantee. A Letter of Intent issued in December 2024 required the applicant to submit a Performance Bank Guarantee of Rs. 4.80 crore. The Committee of Creditors cancelled the Letter of Intent and forfeited the earnest money deposit of Rs. 50 lakh.It noted that “The material on record establishes that the Successful Resolution Applicant (SRA), despite approval of the resolution plan with 100% voting share, has failed to comply with essential conditions of the Letter of Intent, particularly the submission of the Performance Bank Guarantee (PBG).” Concluding that there was no further scope to revive the company through the insolvency process, the tribunal ordered the liquidation of Keerthi Hotels and appointed the Resolution Professional as Liquidator. Case Title: Pridhvi Asset Reconstruction & Securitisation Company Ltd vs Sri Pavana Keerthi Hotels India Pvt Ltd Case Number: I.A (IBC) (Liq) No. 03/2025 in C.P. (IB) No. 153/7/HDB/2021 For Applicant: Mano Ranjani & M. Rama Rao, AdvocatesClick Here To Read/Download Order

NCLT Hyderabad Orders Liquidation Of Pavana Keerthi Hotels After SRA Fails To Furnish Bank Guarantee

Kirit Singhania

Tags