# Pen India Private Limited vs. Reliance Entertainment Studios Private Limited

> NCLT judgment dated 2026-08-19. Citation: TCN-2026-NCLT-00875. Pen India Private Limited (Financial Creditor/Applicant) filed an application under Section 7…

- **Court:** NCLT
- **Order date:** 19 Aug 2026
- **Citation:** TCN-2026-NCLT-00875
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/pen-india-private-limited-vs-reliance-entertainment-studios-private-limited-gaboj

## Summary

### Background

Pen India Private Limited (Financial Creditor/Applicant) filed an application under Section 7 of the IBC, 2016, to initiate CIRP against Reliance Entertainment Studios Private Limited (Corporate Debtor) for a default of Rs.11,94,04,016/-. The default arose from a Security Deposit Agreement (SDA) dated 14.11.2022, where the Applicant provided Rs.20,00,00,000/- as financial assistance with 21% p.a. compounded monthly interest. A part payment of Rs.15,00,00,000/- was made by Friday Filmworks Pvt. Ltd. on behalf of the CD, leaving a balance. The CD acknowledged the debt multiple times but failed to repay.

## Facts

Pen India Private Limited (Applicant/Financial Creditor) filed an application under Section 7 of the IBC, 2016, against Reliance Entertainment Studios Private Limited (Corporate Debtor).

The application, C.P. (IB) No.1063/MB/2025, was filed on 08.08.2025.

The Applicant and the Corporate Debtor executed a Security Deposit Agreement (SDA) dated 14.11.2022.

Under the SDA, the Applicant disbursed Rs.20,00,00,000/- to the Corporate Debtor on 29.11.2022.

The SDA stipulated repayment of the amount with interest at 21% p.a. compounded monthly.

An Additional Agreement was executed on 06.10.2023 between the Applicant, CD, Plan C Studios LLP, and Friday Filmworks Pvt. Ltd. (FFW).

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## Issues and analysis

### Issue 1: Whether the amount advanced by the Applicant under the Security Deposit Agreement constitutes a …

**Ratio:** A transaction, irrespective of its nomenclature, constitutes a financial debt under

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**Reasoning:** The Security Deposit Agreement's recitals explicitly state the Corporate Debtor sought

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**Interpretation:** The Adjudicating Authority must examine the real nature and commercial

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**Application:** In this case, the Security Deposit Agreement, read as a whole, satisfies the

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## Parties

- **Judges:** NILESH S…; SAMEER…
- **Appellants:** Pen India Private…
- **Respondents:** Reliance Entertain…
- **Other parties:** Committee of…; Umesh Balaram…
- **Advocates:** Nausher…; Jehan Fa…; +4 more

## Timeline

- **2022-11-14 — Security Deposit…**: The Applicant (Pen India Private Limited) and the Corporate Debtor (Reliance…
- **2022-11-29 — Disbursement of…**: The Applicant disbursed Rs.20,00,00,000/- to…

## 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)

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