# In the matter of Aascar Film Private Limited IA-552 & 652-IB-2020 in SR No. 824-20202 in CP-1183-IB-2018

> NCLT judgment dated 2021-04-21. Citation: TCN-2021-NCLT-02325. The case involves multiple applications (IA/652/IB/2020, SR No.824/2020, and IA/552/IB/2020)…

- **Court:** NCLT
- **Order date:** 21 Apr 2021
- **Citation:** TCN-2021-NCLT-02325
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aascar-film-private-limited-ia-552-652-ib-2020-in-sr-no-824-20202-in-cp-1183-ib-7d30673f

## Summary

### Background

The case involves multiple applications (IA/652/IB/2020, SR No.824/2020, and IA/552/IB/2020) filed in CP/1183/IB/2018 concerning the Corporate Debtor, M/s. Aascar Film Private Limited. The erstwhile Board of Directors filed IA/652/IB/2020 and SR No.824/2020 seeking relief from the rigors of the Code due to a stale and time-barred debt, and to restore the status quo ante prior to an order dated 19.09.2019, effectively seeking to dissolve the CIRP. IA/552/IB/2020 was filed by Mr. Madhan Kumar, seeking acceptance of his Expression of Interest and a stay on the Committee of Creditors' decision towards liquidation.

## Facts

M/s. Aascar Film Private Limited is undergoing CIRP. The erstwhile Board of Directors filed IA/652/IB/2020 and SR No.824/2020 seeking relief from the rigors of the Code, arguing that the debt was stale and time-barred, and seeking to restore the status quo ante prior to the order dated 19.09.2019. Mr. V. Ravichandran, the Suspended Director, represented the Corporate Debtor in these applications. Mr. Madhan Kumar filed IA/552/IB/2020 seeking acceptance of his Expression of Interest, which was submitted belatedly. The Resolution Professional published an invitation for Expression of Interest in the newspaper "Business Standard", Chennai Edition, dated 03.12.2019, with a last date for submission of 18.12.2019. The 5th CoC meeting decided to go for liquidation.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be relieved from the rigors of the Code triggered on account of …

**Ratio:** The Adjudicating Authority does not have the power to relieve a corporate debtor from the

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**Reasoning:** The court found no merit in the application seeking relief from the CIRP based on the

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**Interpretation:** The interpretation is that the IBC process cannot be circumvented simply

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**Application:** The ratio and reasoning apply directly to the Corporate Debtor's application,

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Appellants:** V. Ravich…
- **Respondents:** M/s. Aascar Film…; Indian Overseas…

## Timeline

- **2019-09-19 — Order Pa…**: An order was passed in C.P.No. 1183/IB/2018, which the erstwhile Board of Directors…
- **2019-12-03 — Invitation for…**: The Resolution Professional published an invitation for Expression of Interest in 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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