# In the matter of DQ Entertainment (International) Limited CP (IB) No. 402-7-HDB-2020

> NCLT judgment dated 2022-06-17. Citation: TCN-2022-NCLT-02194. The case involves a Company Petition filed by Export-Import Bank of India (Exim Bank) under…

- **Court:** NCLT
- **Order date:** 17 Jun 2022
- **Citation:** TCN-2022-NCLT-02194
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dq-entertainment-international-limited-cp-ib-no-402-7-hdb-2020-9a48df12

## Summary

### Background

The case involves a Company Petition filed by Export-Import Bank of India (Exim Bank) under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against DQ Entertainment (International) Limited. Exim Bank, the Financial Creditor, claims that DQ Entertainment defaulted on its debt. The Financial Creditor extended a non-funded facility up to USD 3.25 Million through Stand by Letter(s) of Credit (SBLC) for DQ Entertainment's global animation co-production projects. The SBLC was invoked by the beneficiary, and the applicant remitted USD 2,692,831.66. DQ Entertainment failed to make payments, leading to its account being classified as a Non-Performing Asset (NPA). The Financial Creditor converted the

…

## Facts

Export-Import Bank of India (Exim Bank) extended a non-funded facility of USD 3.25 million to DQ Entertainment (International) Limited through Standby Letters of Credit (SBLC) to support the Corporate Debtor's contributions to global animation co-production projects. The SBLC was later renewed and modified. Under the renewed facility, Exim Bank issued an SBLC aggregating USD 2,692,831.66 in favor of Bank of India, Jersey, with validity until January 31, 2017, to facilitate DQ Entertainment's subsidiary, DQ Entertainment (Ireland). The SBLC was invoked by the beneficiary, and Exim Bank remitted USD 2,692,831.66 on January 31, 2017. DQ Entertainment failed to make payments to Exim Bank, leading to the account being classified as a Non-Performing Asset (NPA) effective May

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC Code can be made against the Corporate Debtor …

**Ratio:** The application under Section 7 of the IBC Code can be made against the Corporate Debtor

…

**Reasoning:** The jurisdiction of the bench is Hyderabad because the registered office of the Corporate

…

**Interpretation:** Section 7 of the IBC Code allows for applications against a corporate debtor

…

**Application:** Since the registered office of DQ Entertainment (International) Limited is in

…

## Parties

- **Judges:** Venkata Ramakrishn…; BINOD KUMAR…
- **Appellants:** Export-Import…
- **Respondents:** DQ Entertainment…

## Timeline

- **1982-01-01 — Financial Creditor…**: Export-Import Bank of India was established by virtue of Export-Import Bank of India Act,…
- **2017-01-31 — SBLC Inv…**: The SBLC was invoked by the Beneficiary and the applicant remitted to the Beneficiary an…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dq-entertainment-international-limited-cp-ib-no-402-7-hdb-2020-9a48df12