Legal7 May 2026, 04:51 pm
Prime Focus Faces NCLT Petition Over ₹353.79 Cr Debt
AI Summary
Prime Focus Ltd has been notified of an oral pronouncement by the National Company Law Tribunal (NCLT), Mumbai Bench, admitting a petition filed by Reliance Alpha Services Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition alleges a financial debt of ₹353.79 crores (including interest) under a Loan Agreement executed in 2019. Prime Focus disputes the claim, stating no funds were disbursed and that the petitioner doesn't qualify as a financial creditor. The company has filed an appeal with the NCLAT and asserts its business operations continue without disruption.
Key Highlights
- NCLT admits insolvency petition against Prime Focus filed by Reliance Alpha Services.
- The petition claims a financial debt of ₹353.79 crores under a 2019 Loan Agreement.
- Prime Focus disputes the debt, claiming no funds were disbursed under the Loan Agreement.
- Company has filed an appeal with NCLAT seeking urgent relief and stay of the order.
- Prime Focus states business operations continue without disruption.