# In the matter of Culver Max Entertainment Private Limited and Ors. vs. National Company Law Tribunal & Ors.

> HC judgment dated 2024-03-19. Citation: TCN-2024-HC-00114. The case involves a writ petition filed by Culver Max Entertainment Private Limited (formerly known…

- **Court:** HC
- **Order date:** 19 Mar 2024
- **Citation:** TCN-2024-HC-00114
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/culver-max-entertainment-private-limited-and-ors-vs-national-company-law-tribuna-1e4cc27e

## Summary

### Background

The case involves a writ petition filed by Culver Max Entertainment Private Limited (formerly known as Sony Pictures Networks India Ltd.) against an order passed by the National Company Law Tribunal (NCLT). The NCLT order pertained to the liquidation of Manthan Braodband Services Pvt. Ltd., a Corporate Debtor, and the status of certain shares pledged with Alliance Broadband Services Pvt. Ltd. (respondent no. 3). The petitioner challenges the NCLT's decision regarding the treatment of these shares under Regulation 21-A of the IBBI (Liquidation Process) Regulations, 2016, arguing that it adversely affects their rights as a secured creditor.

## Facts

Manthan Braodband Services Pvt. Ltd. underwent Corporate Insolvency Resolution Process (CIRP) which culminated in liquidation proceedings initiated on April 6, 2022. Alliance Broadband Services Pvt. Ltd. (respondent no. 3) initiated the insolvency petition under Section 7 of the IBC. Alliance claimed to be a secured creditor with a pledge over 77,500 equity shares of Manthan. Culver Max Entertainment Private Limited (Sony), the petitioner, is also a secured creditor of Manthan. The NCLT directed the sale of Manthan's assets, including the shares allegedly pledged with Alliance. The Liquidator filed an application to approve the sale. Alliance had also filed a civil suit seeking a declaration of pledge. The NCLT passed an order under Regulation 21-A of the IBBI

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## Issues and analysis

### Issue 1: Whether the NCLT acted without jurisdiction in relying upon Regulation 21-A to direct Alliance to …

**Ratio:** Regulation 21-A of the IBBI (Liquidation Process) Regulations, 2016, stipulates that any

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**Reasoning:** The court reasoned that since Alliance failed to exercise its security interest over the

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**Interpretation:** Regulation 21-A is interpreted to mean that a secured creditor must act

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**Application:** In this case, because Alliance did not enforce its security interest within the

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## Parties

- **Judges:** SABYASACHI…
- **Appellants:** Culver Max…
- **Respondents:** Manthan Braodband…

## Timeline

- **2018-12-01 — Insolvency Petition…**: Alliance Broadband Services Pvt. Ltd. filed an insolvency petition under Section 7 of the…
- **2019-03-01 — Civil Suit…**: Alliance filed a civil suit seeking a declaration of pledge in respect of the pledged…

## 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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