Procedural Background
This disclosure is in continuation of previous filings dated May 7, 2026, May 8, 2026, May 11, 2026, May 12, 2026, May 20, 2026, May 27, 2026 and July 11, 2026 regarding Company Appeal (AT) (Insolvency) No. 850 of 2026 before the National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi.
NCLAT Orders Summary
The written orders dated July 9, 2026 and July 10, 2026 passed by Hon'ble NCLAT have been made available on NCLAT's website. The key determinations include:
- Closure of the Corporate Insolvency Resolution Process (CIRP) of Prime Focus Limited
- Setting aside of the impugned order dated May 6, 2026 that originally admitted the company into CIRP
- Disposal of the appeal in terms of the settlement
Financial Details
- The Section 7 proceeding was initiated for a total amount of ₹353,79,74,505 (approximately ₹353.79 crore)
- This amount includes principal of ₹200 crore plus interest and default interest
- The amount was deposited in an interest-bearing account with the Registrar, NCLAT by May 20, 2026 as directed by NCLAT's order dated May 12, 2026
- The lien over this fixed deposit has been withdrawn
Discharge Agreement
- A Discharge Agreement dated July 1, 2026 was executed by the creditor (Respondent No. 1, Raspalfa Services Private Limited)
- The funds are to be disbursed to parties strictly in terms of this Discharge Agreement
- Respondent No. 1 filed an affidavit supporting the prayers made by the appellant
Claims Position
- The Interim Resolution Professional (IRP) filed an affidavit stating no claims were received in the CIRP of the corporate debtor as of the filing date
- Public announcement in 'Form-A' was issued on May 8, 2026
- The NCLAT had directed the IRP not to take further steps pursuant to the impugned order on May 8, 2026
- The operation of the impugned order was stayed on May 12, 2026
Legal Precedent
NCLAT cited the judgment in 'Rajeev Goyal' Vs. 'Sankalp Siddhi Developers Pvt. Ltd. & Anr.' (Comp. App. (AT) (Ins.) No. 846/2025) where CIRP was closed in similar circumstances when no claims were received despite publication and parties had settled.
Company Representation
The appeal was represented by senior advocates Mr. Arun Kathpalia and Mr. Abhijeet Sinha along with a team of advocates. Respondents were represented by Mr. Hasan Murtaza, Mr. Sameer Sharma, and Mr. Ankit Kr. Sinha.