# In the matter of Innovative Studios Pvt. Ltd. C.P. (IB) No. 181-BB-2018

> NCLT judgment dated 2021-01-08. Citation: TCN-2021-NCLT-03351. The case involves C.P.(IB)No.181/BB/2018 filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 8 Jan 2021
- **Citation:** TCN-2021-NCLT-03351
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/innovative-studios-pvt-ltd-cp-ib-no-181-bb-2018-609d5ea8

## Summary

### Background

The case involves C.P.(IB)No.181/BB/2018 filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Section 230(6) of the Companies Act, 2013, and Rule 2B of the IBBI (Liquidation Process) Regulations, 2016. The initial petition was filed by Karnataka State Financial Corporation seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Innovative Studios Private Limited. After failing to obtain a suitable resolution plan during CIRP, the Committee of Creditors (COC) decided to initiate liquidation proceedings. The Adjudicating Authority ordered the liquidation of the Corporate Debtor and appointed a Liquidator. Subsequently, a scheme of compromise was proposed by Suresh Productions Entertainment LLP, which was accepted by the

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## Facts

Karnataka State Financial Corporation filed C.P.(IB)No.181/BB/2018 under Section 7 of IBC, 2016, seeking CIRP initiation against Innovative Studios Private Limited. The Adjudicating Authority admitted the petition on 2019-04-11, appointing an IRP and imposing a moratorium. Due to the failure of CIRP, the COC decided to initiate liquidation proceedings, leading to I.A. No. 678 of 2019. The Adjudicating Authority ordered liquidation on 2020-01-06, appointing a Liquidator. The Liquidator made public announcements and intimated the liquidation to ROC and IBBI. A compromise proposal was received from Suresh Productions Entertainment LLP, which was accepted by stakeholders. The Liquidator received an offer from ANA Capital Advisors LLP, deemed low by the Stakeholders

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## Issues and analysis

### Issue 1: Whether the Scheme of Compromise satisfies the extant provisions of the Code and the Companies Act, …

**Ratio:** The ratio is based on the court's assessment of whether the scheme complies with the

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**Reasoning:** The court reasoned that the scheme was approved by the requisite majority of creditors

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**Interpretation:** The interpretation involves examining the relevant provisions of the IBC and

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**Application:** The ratio and reasoning apply to the specific facts of the case, including the

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Karnataka State…
- **Respondents:** Innovative…; BaladyShekar…

## Timeline

- **2018-01-01 — C.P.(IB)No.181/BB/2018…**: C.P.(IB)No.181/BB/2018 is filed by M/s. Karnataka State Financial Corporation…
- **2019-04-11 — CIRP Init…**: The Adjudicating Authority admitted the petition, initiating CIRP, appointing IRP, and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 230(6) — Delegation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-230)

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