# 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-02497. 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-02497
- **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-2018-67672f9d

## 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, and 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, submitted a plan that was later

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## Facts

Karnataka State Finance Corporation, a financial creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Innovative Studios Private Limited. The petition was admitted by the Bengaluru Bench of the National Company Law Tribunal (NCLT) under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. Mr. Balady Shekar Shetty was appointed as the Interim Resolution Professional (IRP). Public announcements were made in Financial Express and Kannada Prabha on 2019-04-13. Several meetings of the Committee of Creditors (CoC) were held between 2019-05-09 and 2019-11-28. M/s. Suresh Productions Entertainment LLP submitted a resolution plan but later withdrew it. The CoC rejected the resolution plan because it was below the liquidation value and 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 allows the Adjudicating Authority to pass an order for

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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 initiating liquidation proceedings

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**Application:** In this case, the Adjudicating Authority considered the CoC's recommendation,

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## Parties

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

## Timeline

- **2019-04-11 — CIRP Init…**: The Adjudicating Authority admitted the Petition of the Financial Creditor Karnataka…
- **2019-04-13 — Public Annou…**: The Interim Resolution Professional (IRP) caused a public announcement in Financial…

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