# 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-02110. 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-02110
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/blue-frog-media-private-limited-cp-ib-4360-mb-2018-e44441b9

## 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 was engaged in the business of live music performance venues. Due to growing competition, high overheads, and unpaid amounts from franchisees, the corporate debtor faced financial difficulties and was unable to honor its commitment for repayment of unsecured loans and interest. Consequently, the corporate debtor filed an application for CIRP.

## Facts

Blue Frog Media Private Limited (the Corporate Debtor) filed a petition under Section 10 of the Insolvency and Bankruptcy Code, 2016, for initiating Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor was incorporated on July 20, 2006, with a share capital of ₹. 18,50,00,000/- and a paid-up capital of ₹. 18,23,00,350/-. The Corporate Debtor was engaged in the business of live music performance venues. It had borrowed funds through unsecured loans from various parties, including its directors and members. Due to growing competition, high overheads, and unpaid amounts from franchisees, the Corporate Debtor faced financial difficulties and was unable to repay its debts. The shareholders passed a special resolution on August 7, 2018, to file for CIRP. The

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## Issues and analysis

### Issue 1: Whether the petition filed by the Corporate Debtor under Section 10 of the Insolvency and …

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

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**Reasoning:** The court heard the counsel for the Corporate Debtor and perused the records. It was

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**Interpretation:** Section 10 provides a mechanism for a corporate debtor facing financial

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**Application:** In this case, the Corporate Debtor had defaulted on its payments to creditors,

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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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