# In the matter of Innovative Studios Pvt. Ltd. I.A. No. 678-2019 in C.P. (IB) No. 181-BB-2018

> NCLT judgment dated 2020-01-06. Citation: TCN-2020-NCLT-02488. The case involves an application (I.A. No.678 of 2019) filed in C.P. (IB) No.181/BB/2018 under…

- **Court:** NCLT
- **Order date:** 6 Jan 2020
- **Citation:** TCN-2020-NCLT-02488
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/innovative-studios-pvt-ltd-ia-no-678-2019-in-cp-ib-no-181-bb-2018-02a945f9

## Summary

### Background

The case involves an application (I.A. No.678 of 2019) filed in C.P. (IB) No.181/BB/2018 under Section 33(2) of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 11 of the NCLT Rules, 2016, seeking an order for the liquidation of the Corporate Debtor, Innovative Studios Private Limited. The application also sought the appointment of Mr. Balady Shekar Shetty as the Liquidator. The Corporate Insolvency Resolution Process (CIRP) was initiated following the admission of a petition by the Financial Creditor, Karnataka State Financial Corporation, under Section 7 of the IBC, 2016. Several meetings of the Committee of Creditors (CoC) were held, but no viable resolution plan was received. The Resolution Applicant, M/s. Suresh Productions Entertainment LLP,

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## Facts

The Financial Creditor, Karnataka State Financial Corporation, filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, for the initiation of Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, Innovative Studios Private Limited. The Adjudicating Authority admitted the petition on April 11, 2019, and appointed an Interim Resolution Professional (IRP). The IRP made a public announcement in Financial Express and Kannada Prabha on April 13, 2019. Several meetings of the Committee of Creditors (CoC) were held between May 2019 and November 2019. A resolution plan was submitted by M/s. Suresh Productions Entertainment LLP, but it was later withdrawn. The CoC rejected the resolution plan because it was less than the

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Innovative Studios Private Limited, should be liquidated under …

**Ratio:** Section 33(2) of the IBC, 2016, allows the Adjudicating Authority to order the

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**Reasoning:** The Committee of Creditors (CoC) recommended the liquidation of the Corporate Debtor

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**Interpretation:** Section 33(2) provides the legal basis for the Adjudicating Authority to order

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**Application:** The Adjudicating Authority applied Section 33(2) to the facts of the case,

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Mr.Balady Shekar…
- **Respondents:** M/s. Innovative…

## Timeline

- **2019-04-11 — Admission of…**: The Adjudicating Authority admitted the petition of the Financial Creditor, Karnataka…
- **2019-04-13 — Public Annou…**: The Interim Resolution Professional (IRP) made a public announcement in Financial Express…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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