# In the matter of Innovative Studios Private Limited I.A No. 245 of 2022 in C.P (IB) No. 181-BB-2018

> NCLT judgment dated 2023-06-09. Citation: TCN-2023-NCLT-05472. Karnataka State Financial Corporation filed an application under Section 60(5) of the…

- **Court:** NCLT
- **Order date:** 9 Jun 2023
- **Citation:** TCN-2023-NCLT-05472
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-bengaluru/innovative-studios-private-limited-ia-no-245-of-2022-in-cp-ib-no-181-bb-2018-750f5619

## Summary

### Background

Karnataka State Financial Corporation filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking the Respondent No. 2 to complete formalities and pay the balance amount of Rs. 85,70,556.00 as per the Compromise Scheme dated 08.01.2021.

## Facts

Karnataka State Financial Corporation filed an application seeking payment of Rs. 85,70,556.00 from Respondent No. 2 as per the Compromise Scheme dated 08.01.2021.

The application against the Corporate Debtor was admitted on 11.04.2019, and liquidation proceedings were initiated on 6.1.2020.

The liquidator received a compromise proposal from Respondent No. 2 on 9.03.2020, and the secured creditors unanimously approved the Compromise Scheme on 30.03.2020.

Respondent No. 2 was the only Resolution Applicant during the CIRP.

The Tribunal approved the Scheme of Compromise on 08.01.2021 and appointed a Supervisory Committee.

The Applicant assigned the loan of Rs.18,01,00,000.00 to VELS Films International Limited.

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## Issues and analysis

### Issue 1: Whether the Applicant is entitled to claim the balance amount of Rs.85,70,556 from the Respondent …

**Ratio:** The Applicant assigned the entirety of the loan amount to VELS Film International Limited

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**Reasoning:** The Tribunal observed that the Applicant executed a Loan Assignment Agreement with VELS

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**Interpretation:** The assignment of the loan implies that the rights to recover the debt now vest

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**Application:** The Applicant cannot claim the balance amount from the Respondent No. 2 as the

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## Parties

- **Judges:** T. Krishn…; Manoj Kumar…
- **Appellants:** Karnataka State…
- **Respondents:** Innovative Film…; M/s Suresh…
- **Advocates:** Rohan T…; B.Raje…

## Timeline

- **2022-05-26 — Application…**: Karnataka State Financial Corporation filed an application under Section 60(5) of the…
- **2019-04-11 — Admission of Ap…**: The application filed against the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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