GBJ HOTELS PRIVATE LIMITED versus SRIHARAN SRIPATHMANATHAN & ORS.

GBJ HOTELS PRIVATE LIMITED versus SRIHARAN SRIPATHMANATHAN & ORS.

The Supreme Court held that inviting GBJ Hotels and GRT Hotels to improve their bids was a valid exercise of the Court's inherent power to fetch the best available offer for the secured asset; GRT Hotels' higher offer was accepted and it was declared the successful bidder; Edelweiss ARCL was directed to pay interest at 18% per annum on the sum of Rs.27 crore returned to GBJ Hotels and to take all consequential steps in accordance with law, while leaving other questions open for determination by appropriate fora.

Parties
Petitioner: GBJ Hotels Private Limited; Respondent: Sriharan Sriparthmanathan; Respondent: Edelweiss Asset Reconstruction Company Limited; Respondent: GRT Hotels and Resorts Private Limited
Jurisdiction
India
Judgment Date
28 April 2025
Procedural Posture
Special Leave Petition (c) No. 7301 of 2025 / Special Leave Petition Disposed by Supreme Court (order Dated 28 April 2025)
Outcome
Special Leave Petition disposed of by the Supreme Court (order dated 28 April 2025)
Legal Topics
Financial Assistance, Debt, Default in Repayment of Dues, Auction, Successful Auction Purchaser, Inherent Power to Fetch Best Offers, Secured Asset, Awarding Interest
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 Debt Recovery Civil Procedure Property and Security Financial Assistance Debt Default in Repayment of Dues Auction +4 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 4 Authorities cited 1 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

GBJ Hotels Private Limited

Petitioner

Sriharan Sriparthmanathan

Respondent

Edelweiss Asset Reconstruction Company Limited

Respondent

GRT Hotels and Resorts Private Limited

Respondent

Procedural Posture

Special Leave Petition (c) No. 7301 of 2025 / Special Leave Petition Disposed by Supreme Court (order Dated 28 April 2025)

Legal Issues

  1. 1 Whether the High Court breached the sanctity of the auction conducted under the SARFAESI Act by considering and accepting a higher third-party offer after an auction result had been announced
  2. 2 Whether the Supreme Court could, in exercise of its inherent powers, invite improved bids to fetch the best available price for the secured asset
  3. 3 Whether interest is payable on the sum returned by the secured creditor to the unsuccessful bidder and at what rate

Ratio Decidendi

The Supreme Court held that inviting GBJ Hotels and GRT Hotels to improve their bids was a valid exercise of the Court's inherent power to fetch the best available offer for the secured asset; GRT Hotels' higher offer was accepted and it was declared the successful bidder; Edelweiss ARCL was directed to pay interest at 18% per annum on the sum of Rs.27 crore returned to GBJ Hotels and to take all consequential steps in accordance with law, while leaving other questions open for determination by appropriate fora.

Court Disposition

Special Leave Petition disposed of by the Supreme Court (order dated 28 April 2025)

Orders

  • GRT Hotels and Resorts Private Limited declared the successful bidder having offered Rs.153 crore.
  • GRT Hotels deposited an additional sum of Rs.33 crore in the Registry in compliance with the Court's order dated 28 March 2025; the Registry invested the amount in a short-term fixed deposit interest-bearing account until further order.