# In the matter of Sharp Eye Advertising Pvt. Ltd.

> NCLT judgment dated 2024-06-12. Citation: TCN-2024-NCLT-01176. The case involves applications (I.A. 3602/2022 and I.A. 461/2024) filed by M/s Rockman…

- **Court:** NCLT
- **Order date:** 12 Jun 2024
- **Citation:** TCN-2024-NCLT-01176
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sharp-eye-advertising-pvt-ltd-865cbc8d

## Summary

### Background

The case involves applications (I.A. 3602/2022 and I.A. 461/2024) filed by M/s Rockman Advertising and Marketing (India) Ltd., a shareholder of M/s Acute Daily Media Pvt. Ltd., against the Corporate Debtor, M/s Sharp Eye Advertising Pvt. Ltd. The applications seek recall of an order dated 17.05.2022, which initiated the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The applicant alleges that the CIRP was initiated fraudulently and with malicious intent by Acute Daily Media Pvt. Ltd. and other financial creditors. The applicant contends that the alleged financial debts were fabricated and that the Section 7 application was filed to defeat an oppression and mismanagement case filed by the applicant against the corporate debtor. The

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## Facts

M/s Rockman Advertising and Marketing (India) Ltd., a shareholder of M/s Sharp Eye Advertising Pvt. Ltd. (Corporate Debtor), filed applications (I.A. 3602/2022 and I.A. 461/2024) seeking recall of the order dated 17.05.2022 initiating CIRP against the Corporate Debtor. The applicant alleged that the CIRP was initiated fraudulently and with malicious intent by M/s Acute Daily Media Pvt. Ltd. and other financial creditors. The applicant contended that the alleged financial debts were fabricated and that the Section 7 application was filed to defeat an oppression and mismanagement case filed by the applicant against the corporate debtor in 2013 (CP No. 143(ND)/2013). The applicant claimed that the promoters of M/s Sharp Eye Advertising Pvt. Ltd. decreased the shareholding

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## Issues and analysis

### Issue 1: Whether the insolvency proceedings against the Corporate Debtor were initiated fraudulently and …

**Ratio:** Section 65 of the Insolvency and Bankruptcy Code (IBC) provides for penalties if any

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**Reasoning:** The court relied on several judgments, including Pawan Kumar Ex-Director and Shareholder

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**Interpretation:** The interpretation of Section 65 requires the Adjudicating Authority to

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**Application:** In this case, the court found that the original Section 7 application was filed

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. SUBRATA KUMAR…
- **Appellants:** M/s Acute Daily…
- **Respondents:** M/S SHARP EYE…

## Timeline

- **2013-01-01 — Oppression and…**: Applicant/Shareholder filed an Oppression and Mismanagement petition (CP No.…
- **2021-01-14 — Section 7 Petit…**: Acute Daily Media Pvt. Ltd. and other financial creditors filed a Section 7 petition…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 65 — Fraudulent or malicious initiation of proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-65)

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