# In the matter of Amrit Rajani & Ors. vs. Pegasus Assets Reconstruction Private Limited

> NCLAT judgment dated 2025-01-23. Citation: TCN-2025-NCLAT-00408. The appeal was filed under Section 61(1) of the Insolvency and Bankruptcy Code, 2016 by Amrit…

- **Court:** NCLAT
- **Order date:** 23 Jan 2025
- **Citation:** TCN-2025-NCLAT-00408
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/amrit-rajani-ors-vs-pegasus-assets-reconstruction-private-limited-025f9425

## Summary

### Background

The appeal was filed under Section 61(1) of the Insolvency and Bankruptcy Code, 2016 by Amrit Rajani, the former director of Shri Balaji Entertainment Private Ltd., against the order dated 03.02.2023 passed by the National Company Law Tribunal, Mumbai Bench (IV), which allowed an application under Section 33(1) of the Code for liquidation of the Corporate Debtor.

## Facts

The Appellant, Amrit Rajani, is the Erstwhile Director of Shri Balaji Entertainments Private Limited, the Corporate Debtor.

Pegasus Assets Reconstruction Private Limited, the Financial Creditor, filed an application under Section 7 of the Code to initiate CIRP against Shri Balaji Entertainments Pvt Ltd.

The Corporate Debtor's account was classified as Non-Performing Asset (NPA) on 02.12.2019, with the date of default being 01.06.2019.

The Corporate Debtor provided a corporate guarantee for a loan to SVC Bank on 31.07.2018.

A Deed of Assignment was executed between SVC Bank and the Respondent No. 1 on 27.02.2020 regarding financial assistance.

The Adjudicating Authority admitted the application under Section 7 and declared a moratorium.

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## Issues and analysis

### Issue 1: Whether the CoC had taken full initiatives to resolve the Corporate Debtor, which is against the …

**Ratio:** The CoC had taken initiatives to resolve the Corporate Debtor by issuing Form G and

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**Reasoning:** No response was received to the Form G, and the CoC considered the likelihood of

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**Interpretation:** The CoC's actions were deemed sufficient

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**Application:** The Tribunal found no error in the CoC's decision to liquidate the Corporate

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## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…; +1 more
- **Appellants:** Amrit R…
- **Respondents:** Balaji Entertainme…; Pegasus Assets…
- **Other parties:** NKGSB Co-operative…; Gajesh Labhchand…; +1 more
- **Advocates:** Umang M…; Harsh…; +2 more

## Timeline

- **03.02.2023 — Impugned…**: Order passed by the National Company Law Tribunal, Mumbai Bench (IV) allowing the…
- **22.04.2022 — Public Annou…**: Corporate Insolvency Resolution Process…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61(1) — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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