NCLAT Closes Prime Focus Ltd Insolvency Proceedings Due to Zero Creditor Claims
Authority: National Company Law Appellate Tribunal Principal Bench, New Delhi
Order Date: 10 July 2026
Case Overview
The National Company Law Appellate Tribunal (NCLAT) heard an appeal (Company Appeal (AT) (Insolvency) No. 850 of 2026) filed by Nishant Avinash Fadia against Raspalfa Services Private Limited & Another regarding the Corporate Insolvency Resolution Process (CIRP) of Prime Focus Ltd.
The Tribunal examined an affidavit dated 09.07.2026 filed by the Resolution Professional which confirmed that a public announcement in 'Form-A' was issued on 08.05.2026 as required under insolvency regulations. However, despite this publication, the Resolution Professional categorically stated that he had not received any claims from creditors in the CIRP of the corporate debtor (Prime Focus Ltd) as of the date of the affidavit.
The Tribunal referenced precedent cases including 'Rajeev Goyal' Vs. 'Sankalp Siddhi Developers Pvt. Ltd. & Anr.' (Comp. App. (AT) (Ins.) No. 846/2025), 'Gaurav Bhatia Vs. Smriti Bhatia & Ors.' (Company Appeal (AT) (Ins) No.881 of 2025), and 'Sachin Malde Vs. Hemant Nanji Chheda & Anr.' (Company Appeal (AT) (Insolvency) No. 123 of 2024), where in similar circumstances of no creditor claims, the CIRP was directed to be closed.
Final Outcome
The NCLAT ordered the closure of the Corporate Insolvency Resolution Process against Prime Focus Ltd, setting aside the impugned order. The Tribunal also directed the removal of the bank lien on the Fixed Deposit Receipt (FDR) amounting to Rs. 3,53,79,74,505/- (₹353.79 crore) and ordered that the funds be disbursed to the parties strictly in terms of the Discharge Agreements dated 01.07.2026. All pending applications were disposed of along with the appeal.
Topics: Insolvency Resolution, Corporate Debt, Legal Precedent