# 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-02513. The case involves an application (I.A. No. 678 of 2019) filed in C.P. (IB) No. 181/BB/2018…

- **Court:** NCLT
- **Order date:** 6 Jan 2020
- **Citation:** TCN-2020-NCLT-02513
- **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-2018-15a6f134

## 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. Despite efforts to find a resolution plan, none were deemed suitable by the Committee of Creditors (CoC).

## Facts

Karnataka State Finance Corporation initiated Corporate Insolvency Resolution Process (CIRP) against Innovative Studios Private Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The Adjudicating Authority admitted the petition and appointed an Interim Resolution Professional (IRP). Several meetings of the Committee of Creditors (CoC) were convened to explore resolution options. M/s Suresh Productions Entertainment LLP submitted a resolution plan, but it was later withdrawn. The CoC sought an extension of the CIRP period, but no viable resolution plan was received. The CoC observed that the submitted plan was less than the liquidation value and recommended liquidation. The Resolution Professional (RP) informed the members that the Resolution

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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 allows the Adjudicating Authority to order the liquidation of

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**Reasoning:** The CoC, after exploring various resolution options and considering the submitted

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

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**Application:** In this case, the CoC's recommendation for liquidation, coupled with the

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## Parties

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

## Timeline

- **2019-04-11 — CIRP Init…**: Adjudicating Authority admitted the Petition of the Financial Creditor Karnataka State…
- **2019-04-13 — Public Annou…**: The IRP caused a public announcement in Financial Express (English Paper) and Kannada…

## 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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