Date: May 27, 2026

Legal & Regulatory Updates

This disclosure is a continuation of previous filings dated May 7, 8, 11, 12, and 20, 2026, regarding insolvency proceedings.

Supreme Court Proceedings (Civil Appeal No. 7946/2026)

  • Raspalfa Services Private Limited (Financial Creditor) filed an appeal under Section 62 of the Insolvency and Bankruptcy Code, 2016, challenging the NCLAT's interim order dated May 12, 2026.
  • The NCLAT's order had stayed the NCLT Mumbai Bench's order dated May 6, 2026, which admitted Raspalfa's Section 7 application against Prime Focus Limited (Corporate Debtor). The stay also directed the Interim Resolution Professional (IRP) not to take further steps.
  • The Supreme Court (Bench: Justice J.B. Pardiwala and Justice K.V. Viswanathan) heard the appeal on May 25, 2026.
  • Key arguments presented:
  • Appellant's Counsel (Mr. Kapil Sibal): Contended the NCLAT interim order was unsustainable. Disputed the corporate debtor's claim of 12,000 employees, presenting a financial statement showing only 15. The total claim amount was ₹353,79,74,505 (Principal: ₹200 Crores + interest + default interest).
  • Respondent's Counsel (Mr. Neeraj Kishan Kaul and Dr. Abhishek Manu Singhvi): Opposed the appeal, stating the entire claimed amount had been deposited. Argued the company had thousands of employees across multiple studios.
  • The Supreme Court order dated May 25, 2026 (made available May 26, 2026) dismissed the appeal. The Court declined to interfere, noting:
  • The impugned order was an interim measure.
  • The main appeal was listed for hearing at the NCLAT on May 28, 2026.
  • The entire amount claimed by the financial creditor had been deposited.
  • The Court recorded an undertaking from the respondent's counsel that a letter dated May 18, 2026, from Brahma AI Services India Limited to Kotak Mahindra Bank, requesting a lien be marked in favor of the NCLAT Registrar, was executed at the instance of the corporate debtor (Prime Focus Limited).

NCLAT Proceedings (Comp. App. (AT) (Ins.) No. 850/2026)

  • I.A. No. 3835/2026, filed by Raspalfa Services seeking vacation of the NCLAT's interim stay order, was heard on May 27, 2026 (advanced from May 28 due to a holiday).
  • The NCLAT noted the Supreme Court's order and dismissed the application as not being pressed in light of that order.
  • The NCLAT has listed the main insolvency appeal for further hearing on July 9, 2026.

Enclosure

  • A copy of the Supreme Court order dated May 25, 2026, was enclosed with the filing.