# In the matter of Blue Frog Media Private Limited C.P. (IB) 4360-MB-2018

> NCLT judgment dated 2021-05-19. Citation: TCN-2021-NCLT-02109. The case pertains to a petition filed under Section 10 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 19 May 2021
- **Citation:** TCN-2021-NCLT-02109
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/blue-frog-media-private-limited-cp-ib-4360-mb-2018-68c73881

## Summary

### Background

The case pertains to a petition filed under Section 10 of the Insolvency and Bankruptcy Code, 2016, for the initiation of the Corporate Insolvency Resolution Process (CIRP) against Blue Frog Media Private Limited. The corporate debtor, engaged in the business of live music performance venues, faced financial distress due to growing competition, increased overheads, and unpaid amounts from franchisees. The company was unable to honor its commitment for repayment of unsecured loans and interest, leading to the decision to initiate CIRP.

## Facts

Blue Frog Media Private Limited, incorporated on July 20, 2006, was engaged in the business of live music performance venues. The company borrowed funds through unsecured loans from various parties, including its directors and members. Due to growing competition, increased overheads, and unpaid amounts from franchisees, the company's business suffered, and it was unable to repay its debts. As of March 31, 2018, the company owed ₹. 5,09,72,605/- to unsecured financial creditors and ₹. 1,84,82,176/- to operational creditors, totaling ₹. 6,94,54,781/-. The shareholders passed a special resolution on August 7, 2018, to file an application for CIRP under Section 10 of the Insolvency and Bankruptcy Code, 2016. The Board of Directors authorized Mr. Sumer Ramesh Vaswani,

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor has committed a …

**Ratio:** Section 10 of the Insolvency and Bankruptcy Code, 2016 allows a corporate debtor to

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**Reasoning:** The court observed that the Corporate Debtor had borrowed unsecured loans and was unable

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**Interpretation:** Section 10 of the IBC allows a corporate debtor to initiate CIRP if it has

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**Application:** The Corporate Debtor's inability to repay unsecured loans, despite demand

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## Parties

- **Judges:** Janab Mohammed…; V. Nallasen…
- **Respondents:** Blue Frog Media…

## Timeline

- **2006-07-20 — Incorporation of…**: Blue Frog Media Private…
- **2018-08-07 — Special Res…**: Shareholders passed a Special Resolution for filing an Application under Section 10 of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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