# J.C. Flowers Asset Reconstruction Pvt. Ltd. vs. Stargaze Entertainment Pvt. Ltd.

> NCLT judgment dated 2026-09-29. Citation: TCN-2026-NCLT-01090. The Corporate Insolvency Resolution Process (CIRP) was initiated against Stargaze Entertainment…

- **Court:** NCLT
- **Order date:** 29 Sept 2026
- **Citation:** TCN-2026-NCLT-01090
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/stargaze-entertainment-private-limited-0ts9v

## Summary

### Background

The Corporate Insolvency Resolution Process (CIRP) was initiated against Stargaze Entertainment Pvt. Ltd. (Corporate Debtor) by J.C. Flowers Asset Reconstruction Pvt. Ltd. (Financial Creditor) under Section 7 of the IBC, 2016, due to a default of Rs. 70,33,51,777.91. Mr. Ashok Kumar Gulla was appointed as the Resolution Professional (RP). Claims were received from both financial and operational creditors. A resolution plan was submitted by Cine Corp Filmdom Pvt. Ltd., which faced scrutiny and was initially rejected by the Tribunal due to significant discrepancies in asset valuation and a low offer compared to the Corporate Debtor's potential asset value. The plan was subsequently revised.

## Facts

CIRP was initiated against Stargaze Entertainment Pvt. Ltd. (Corporate Debtor) by J.C. Flowers Asset Reconstruction Pvt. Ltd. (Financial Creditor) under Section 7 of IBC, 2016.

The Corporate Debtor defaulted on an amount of Rs. 70,33,51,777.91/- as of 29.12.2023.

The Financial Creditor recalled the Credit Facilities granted to the Corporate Debtor on 12.07.2021.

The date of default was 19.07.2021 (7 days post recall), which was within the limitation period.

The default committed by the corporate debtor was also recorded as 30.01.2021 in the NeSL Form-D report.

CIRP commenced on 13.05.2024, and the Corporate Debtor did not appear despite notice, leading to ex-parte proceedings.

…

## Issues and analysis

### Issue 1: Whether the resolution plan submitted by Cine Corp Filmdom Pvt. Ltd. is feasible and viable for …

**Ratio:** A resolution plan is not feasible or viable for approval if it offers a

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**Reasoning:** The initial plan offered Rs. 50 Lakhs while the SRA could benefit by Rs. 3 Crores from

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**Interpretation:** A resolution plan must demonstrate a genuine attempt to revive the corporate

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**Application:** The Tribunal rejected the resolution plan, stating that the total amount

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. ATUL CHATURVED…
- **Appellants:** J.C. Flowers…; Ashok Kumar…
- **Respondents:** Stargaze Entertain…
- **Other parties:** CFM Asset…; Pritam At…; +13 more
- **Advocates:** Kritya…; Shreedhar…; +3 more

## Timeline

- **2011-02-11 — Revenue Share…**: Operation and management agreement dated 11th…
- **2020-03-01 — Cessation of Rent…**: The corporate debtor stopped making…

## 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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