# In the matter of SMAAASH LEISURE LIMITED

> NCLT judgment dated 2026-01-29. Citation: TCN-2026-NCLT-00081. J.C. Flowers Asset Reconstruction Private Limited filed an application under Section 7 of the…

- **Court:** NCLT
- **Order date:** 29 Jan 2026
- **Citation:** TCN-2026-NCLT-00081
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/smaaash-leisure-limited-67ede0b8

## Summary

### Background

J.C. Flowers Asset Reconstruction Private Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Smaaash Leisure Limited, the Corporate Debtor (CD). The application pertains to a default in interest payment post the Section 10A period.

## Facts

J.C. Flowers Asset Reconstruction Private Limited filed CP (IB) No.698/MB/2025 under Section 7 of the IBC to initiate CIRP against M/s Smaaash Leisure Limited.

The Applicant is a Financial Creditor and an Asset Reconstruction Company registered with the Reserve Bank of India (RBI).

M/s Smaaash Leisure Limited (formerly known as PVR BLUO Entertainment Limited) is the Corporate Debtor.

The Corporate Debtor had availed loan facilities from Yes Bank, which were later assigned to the Applicant.

The Corporate Debtor defaulted on its repayment obligations, leading to the issuance of a loan recall notice by the Assignor Bank.

The Corporate Debtor availed moratorium benefits due to the COVID-19 pandemic, and the overdue interest was converted into a Funded Interest Term Loan (FITL).

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC is maintainable for default committed subsequent …

**Ratio:** Yes, defaults occurring after the Section 10A period can validly form the basis of

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**Reasoning:** The Tribunal relied on judgments that recognize each missed installment as a fresh and

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**Interpretation:** The Section 10A period does not bar the initiation of CIRP for defaults

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**Application:** The Applicant has specifically confined the application to defaulted interest

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## Parties

- **Judges:** SAMEER…; NILESH S…
- **Appellants:** JC Flowers Asset…
- **Respondents:** Smaaash Leisure…
- **Other parties:** Megha Ag…; Small Industrial…; +3 more
- **Advocates:** Rohan Ag…; Sakil A…; +1 more

## Timeline

- **07.07.2025 — Application…**: C.P. (IB) No.698/MB/2025 filed by J.C.…
- **28.07.2025 — First Li…**: The case was first listed, and the Tribunal directed the Applicant to amend the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3 — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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