# In the matter of Innovative Studios Pvt. Limited I.A. No. 93-2020 in C.P.(IB) No. 181-BB-2018

> NCLT judgment dated 2020-03-02. Citation: TCN-2020-NCLT-01739. The case involves an application (I.A. No. 93 of 2020) filed by M/s. Rajesh Exports Limited…

- **Court:** NCLT
- **Order date:** 2 Mar 2020
- **Citation:** TCN-2020-NCLT-01739
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/innovative-studios-pvt-limited-ia-no-93-2020-in-cpib-no-181-bb-2018-cf2d96b4

## Summary

### Background

The case involves an application (I.A. No. 93 of 2020) filed by M/s. Rajesh Exports Limited (the Applicant/Financial Creditor) in a corporate insolvency resolution process (CIRP) against M/s. Innovative Studios Private Limited (the Corporate Debtor). The CIRP was initiated by M/s. Karnataka State Financial Corporation under Section 7 of the IBC, 2016. The Applicant sought consideration of its claim of Rs. 51,12,08,556/- as of 11.04.2019, along with interest at 24%. The Resolution Professional (RP)/Liquidator classified the Applicant's claim as unsecured and admitted only a portion of it, leading to the current application seeking directions to accept the full claim as secured.

## Facts

M/s. Karnataka State Financial Corporation initiated CIRP against M/s. Innovative Studios Private Limited under Section 7 of the IBC, 2016. The Adjudicating Authority admitted the petition on 11.04.2019 and appointed Mr. BaladyShekar Shetty as the IRP. M/s. Rajesh Exports Limited, a public limited company, claimed to be a financial creditor of the Corporate Debtor, having extended inter-corporate deposits (ICDs). The Applicant submitted a claim of Rs. 51,12,08,556/- as of 11.04.2019, with 24% interest. The Applicant's claim was based on ICD agreements and registered mortgage deeds executed in 2009. The RP/Liquidator classified the Applicant's claim as unsecured and admitted a smaller amount. The RP/Liquidator requested additional documents to substantiate the claim,

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## Issues and analysis

### Issue 1: Whether the Applicant's claim should be considered secured based on the ICD agreements and mortgage …

**Ratio:** The court recognized the importance of registered mortgage deeds in securing financial

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**Reasoning:** The court reasoned that the RP/Liquidator has a statutory obligation to scrutinize claims

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**Interpretation:** The interpretation of the IBC and related regulations requires a balance

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**Application:** In this case, the court applied the ratio by directing the Applicant to submit

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** M/s. Rajesh…
- **Respondents:** M/s. Innovative…; BaladyShekar…

## Timeline

- **2018-01-01 — CP(IB) No. 181/BB/2018…**: Initial Company Petition bearing C.P. (IB) No.181/BB/2018 was filed by M/s. Karnataka…
- **2019-04-11 — Admission of Company…**: The Adjudicating Authority…

## 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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