# In the matter of M/s. Entertainment City Limited
Vs.
Simran Kaur & Ors. Company Appeal (AT) (Insolvency) No. 431 of 2022

> NCLAT judgment dated 2022-07-25. Citation: TCN-2022-NCLAT-00325. The case involves an appeal against an order dated 06.04.2022 passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 25 Jul 2022
- **Citation:** TCN-2022-NCLAT-00325
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ms-entertainment-city-limited-vs-simran-kaur-ors-company-appeal-d6eab65a

## Summary

### Background

The case involves an appeal against an order dated 06.04.2022 passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi, Principal Bench, which rejected an application filed by the Appellant, M/s. Entertainment City Limited, in a matter involving Simran Kaur & Ors. Vs. Entertainment City Limited. The appellant contended that a moratorium imposed by the Hon'ble Supreme Court in orders dated 20.01.2020 and 24.03.2021, related to Unitech Limited and its subsidiaries, should also apply to the appellant, a joint venture of Unitech Holdings Limited. The Adjudicating Authority rejected the application, holding that the appellant failed to prove it was a subsidiary of Unitech Holdings Limited.

## Facts

M/s. Entertainment City Limited (the Appellant) filed an appeal against an order dated 06.04.2022 passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi. The Adjudicating Authority rejected an application filed by the Appellant in the matter of Simran Kaur & Ors. Vs. Entertainment City Limited. The Appellant contended that a moratorium imposed by the Hon'ble Supreme Court in orders dated 20.01.2020 and 24.03.2021, related to Unitech Limited and its subsidiaries, should also apply to the Appellant. The Appellant is a joint venture of Unitech Holdings Limited. The Adjudicating Authority rejected the application, holding that the Appellant failed to prove it was a subsidiary of Unitech Holdings Limited. The Hon'ble Supreme Court passed an

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## Issues and analysis

### Issue 1: Whether the moratorium imposed by the Hon'ble Supreme Court on Unitech Limited and its subsidiaries …

**Ratio:** The legal principle applied is the interpretation of the term 'affiliate' and whether it

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**Reasoning:** The court reasoned that based on the facts and the definition of 'affiliate', the

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**Interpretation:** The interpretation of the term 'affiliate' is crucial in determining whether

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**Application:** The court applied the ratio and reasoning to the specific facts of the case,

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## Parties

- **Judges:** Ashok Bh…; M. Satyanarayana…; +1 more
- **Appellants:** M/s. Entertainment…
- **Respondents:** Unitech L…; Simran…

## Timeline

- **2020-01-20 — Supreme Cour…**: The Hon'ble Supreme Court passed an order in Civil Appeal No. 10856/2016- Bhupinder Singh…
- **2020-08-27 — Section 7 App…**: An Application under Section 7 of the Insolvency and Bankruptcy Code, 2016 was filed by…

## 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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