NCLAT Continues Interim Relief for Prime Focus; Next Hearing Set for May 12
May 11, 2026
NCLAT, New Delhi continued its interim order restraining the IRP from acting on the NCLT admission order against Prime Focus Limited on May 11, 2026, adjourning the matter to May 12, 2026. The NCLT, Mumbai Bench had admitted an insolvency petition filed by Reliance Alpha Services Private Limited under Section 7 of the IBC for an alleged financial debt of approximately Rs. 353.79 crores. Prime Focus has contested the admission and assures stakeholders that its global VFX and post-production business operations remain unaffected.
Prime Focus Limited has disclosed further developments in its ongoing insolvency appellate proceedings, with the National Company Law Appellate Tribunal (NCLAT), New Delhi, continuing its interim order and adjourning the matter to May 12, 2026. In a disclosure to the stock exchanges dated May 11, 2026, filed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company informed that its appeal — Company Appeal (AT) (Ins.) No. 850 of 2026 — was listed before the Hon'ble Chairperson, NCLAT, New Delhi, on May 11, 2026. This follows the original NCLT, Mumbai Bench oral pronouncement on May 6, 2026, admitting an insolvency petition filed against Prime Focus by Reliance Alpha Services Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), and the subsequent NCLAT hearing on May 8, 2026, which had first granted interim relief.
Latest NCLAT Developments — May 11, 2026
At the May 11, 2026 hearing before the Hon'ble Chairperson Justice Ashok Bhushan and Member (Technical) Barun Mitra, the NCLAT continued the interim direction originally issued on May 8, 2026, restraining the Interim Resolution Professional (IRP) from taking any further steps pursuant to the impugned NCLT order. The tribunal adjourned the matter to May 12, 2026 for further hearing. The appellant was also permitted to file an Additional Affidavit during the course of the day, subject to serving a copy on the other side. The updated details of the appellate proceedings are summarised below:
Parameter: Details Appeal Reference: Company Appeal (AT) (Ins.) No. 850 of 2026 Appellate Tribunal: NCLAT, Principal Bench, New Delhi Heard Before: Justice Ashok Bhushan, Chairperson; Barun Mitra, Member (Technical) Appellant: Nishant Avinash Fadia (Director of Prime Focus Limited) Respondents: Raspalfa Services Private Limited & Anr. Date of Hearing: May 11, 2026 Interim Direction: Continued — IRP shall not take any further steps pursuant to NCLT order Additional Affidavit: Appellant permitted to file during course of the day Next Date of Hearing: May 12, 2026
NCLT Admission Order
The NCLT, Mumbai Bench (Court VI), comprising Sh. Nilesh Sharma (Member – Judicial) and Sh. Sameer Kakar (Member – Technical), admitted the petition filed by Reliance Alpha Services Private Limited against Prime Focus under Section 7 of the IBC in CP(IB)/845/MB/2023. The tribunal found that the requisite conditions to trigger the Corporate Insolvency Resolution Process (CIRP) were fulfilled, having established the existence of a financial debt and default exceeding the threshold of Rs. 1 crore. The NCLT also dismissed Prime Focus's Interlocutory Application (IA No. 5178/MB/2023), which had challenged the maintainability of the insolvency petition. The key parameters of the NCLT order are as follows:
Parameter: Details Case Reference: CP(IB)/845/MB/2023 with IA 5178/MB/2023 NCLT Bench: Mumbai Bench Court VI Petitioner: Reliance Alpha Services Private Limited Provision Invoked: Section 7 of the Insolvency and Bankruptcy Code, 2016 Alleged Financial Debt: Rs. 353,79,74,505/- (approximately Rs. 353.79 crores, inclusive of interest) Principal Amount: Rs. 200 crores Date of Default: December 1, 2021 Date of Oral Pronouncement: May 6, 2026 IRP Appointed: NPV Insolvency Professionals Private Limited (formerly Mantrah Insolvency Professional Private Limited) IRP Registration No.: IBBI/IPE-0040/IPA-2/2022-23/50021 Advance to IRP: Rs. 3,00,000/- (to be paid by Financial Creditor within 7 days)
Background: The Financial Debt Dispute
The insolvency petition arises from a Loan Agreement dated February 25, 2019, executed between Reliance Alpha Services Private Limited (as lender) and Prime Focus (as borrower), under which a principal amount of Rs. 200 crores was treated as outstanding, carrying interest at 10% per annum. The debt originated from a Business Transfer Agreement (BTA) dated November 19, 2014, between Prime Focus, Reliance Media Works Limited (RMWL), and Reliance Land Private Limited, under which Prime Focus acquired RMWL's film and media services business. The NCLT found that Prime Focus had acknowledged the debt in its Annual Reports for multiple financial years, deducted and deposited TDS under Section 194A of the Income Tax Act on interest payable, executed a fresh Loan Agreement, and sought extensions for interest payments — all of which the tribunal held constituted sufficient proof of a financial debt and default.
Prime Focus has strongly contested the admission, maintaining that no amount was ever disbursed by the petitioner directly to it under the Loan Agreement, and that the alleged obligation was contingent upon the transfer of certain business assets — including the Adlabs Building and studios — which the company contends were never fully transferred. The company has itself filed a commercial suit (Commercial Suit (L) No. 21566 of 2023) before the Bombay High Court for adjudication of the BTA dispute, which remains pending. The NCLT, however, relying on the Supreme Court's judgments in Innoventive Industries Ltd. vs. ICICI Bank and Power Trust (Promoter of Hiranmaye Energy Ltd.) vs. Bhuvan Madan, held that a disputed debt does not bar admission of a Section 7 petition once the existence of financial debt and default is established.
Business Operations Unaffected
Prime Focus has assured all stakeholders that its business operations continue in the ordinary course without any disruption. The company highlighted that its global VFX and post-production operations remain fully functional, all customer engagements continue to be serviced as normal, and employees, vendors, and partners continue to work in the usual manner. The company has stated its full commitment to protecting the interests of all stakeholders, including shareholders, employees, customers, vendors, and lenders, and has indicated it will keep the stock exchanges informed of all material developments in accordance with applicable regulations. The disclosure was signed by Parina Shah, Company Secretary and Compliance Officer.
We’re building Scanx - to help you express your trading & investing idea, to help you analyse the markets better.
Stock Markets are the true indicator of the growth of any country's economy. We are bullish on India, we are bullish on India's prospects to be one of largest economies of the world. We believe that Stock Markets provide an unique opportunity for all Indians to participate in the growth story of India. We are enabling the same for Indians.
As financial services are becoming more accessible, there is now a large set of Indians today who are financially aware and literate. They value time and seek high quality products & services. Most screening, trading, investing platforms available today are more or less similar to each other, and they have not evolved with time. While both traders & investors have gotten smart about how they make money and build wealth, as users they have continued to use the same products, features, and platforms that were available for years with little or no innovation.
We plan to change that - a technology-led and artificial intelligence enabled platform built for super traders and long term investors.
Disclaimer:
The data and information provided on this website is for general informational and research purposes only. While we strive to ensure that the content is accurate, up-to-date, and reliable, this platform utilizes artificial intelligence (AI) tools to generate, curate, and summarize information. As such, the content may occasionally contain errors, omissions, or outdated information. All users are therefore advised to cross verify the source of the data and information.
This website does not constitute professional, legal, financial, medical, or any other form of licensed advice. Users are encouraged to independently verify any information before relying on it, especially for decisions that may have legal, financial, or personal consequences.
The views, analyses, and summaries presented on this platform may be generated or assisted by AI and do not necessarily reflect the opinions of the website owners, operators, editors, or affiliates.
We make no warranties or representations, express or implied, regarding the completeness, accuracy, reliability, suitability, or availability of the information contained on this website. Any reliance you place on such information is strictly at your own risk.
This website may include links to third-party sources or content. We do not control or endorse the nature, accuracy, or availability of those external sites and are not responsible for any content or damages arising from their use.
By using this website, you acknowledge and agree that the use of AI-generated content involves inherent limitations, uncertainties and inaccuracies, and you accept full responsibility for how you interpret and use the information provided.
We reserve the right to modify, update, or remove content and this disclaimer at any time without prior notice.
Latest NCLAT Developments — May 11, 2026
At the May 11, 2026 hearing before the Hon'ble Chairperson Justice Ashok Bhushan and Member (Technical) Barun Mitra, the NCLAT continued the interim direction originally issued on May 8, 2026, restraining the Interim Resolution Professional (IRP) from taking any further steps pursuant to the impugned NCLT order. The tribunal adjourned the matter to May 12, 2026 for further hearing. The appellant was also permitted to file an Additional Affidavit during the course of the day, subject to serving a copy on the other side. The updated details of the appellate proceedings are summarised below:
Parameter: Details Appeal Reference: Company Appeal (AT) (Ins.) No. 850 of 2026 Appellate Tribunal: NCLAT, Principal Bench, New Delhi Heard Before: Justice Ashok Bhushan, Chairperson; Barun Mitra, Member (Technical) Appellant: Nishant Avinash Fadia (Director of Prime Focus Limited) Respondents: Raspalfa Services Private Limited & Anr. Date of Hearing: May 11, 2026 Interim Direction: Continued — IRP shall not take any further steps pursuant to NCLT order Additional Affidavit: Appellant permitted to file during course of the day Next Date of Hearing: May 12, 2026
NCLT Admission Order
The NCLT, Mumbai Bench (Court VI), comprising Sh. Nilesh Sharma (Member – Judicial) and Sh. Sameer Kakar (Member – Technical), admitted the petition filed by Reliance Alpha Services Private Limited against Prime Focus under Section 7 of the IBC in CP(IB)/845/MB/2023. The tribunal found that the requisite conditions to trigger the Corporate Insolvency Resolution Process (CIRP) were fulfilled, having established the existence of a financial debt and default exceeding the threshold of Rs. 1 crore. The NCLT also dismissed Prime Focus's Interlocutory Application (IA No. 5178/MB/2023), which had challenged the maintainability of the insolvency petition. The key parameters of the NCLT order are as follows:
Parameter: Details Case Reference: CP(IB)/845/MB/2023 with IA 5178/MB/2023 NCLT Bench: Mumbai Bench Court VI Petitioner: Reliance Alpha Services Private Limited Provision Invoked: Section 7 of the Insolvency and Bankruptcy Code, 2016 Alleged Financial Debt: Rs. 353,79,74,505/- (approximately Rs. 353.79 crores, inclusive of interest) Principal Amount: Rs. 200 crores Date of Default: December 1, 2021 Date of Oral Pronouncement: May 6, 2026 IRP Appointed: NPV Insolvency Professionals Private Limited (formerly Mantrah Insolvency Professional Private Limited) IRP Registration No.: IBBI/IPE-0040/IPA-2/2022-23/50021 Advance to IRP: Rs. 3,00,000/- (to be paid by Financial Creditor within 7 days)
Background: The Financial Debt Dispute
The insolvency petition arises from a Loan Agreement dated February 25, 2019, executed between Reliance Alpha Services Private Limited (as lender) and Prime Focus (as borrower), under which a principal amount of Rs. 200 crores was treated as outstanding, carrying interest at 10% per annum. The debt originated from a Business Transfer Agreement (BTA) dated November 19, 2014, between Prime Focus, Reliance Media Works Limited (RMWL), and Reliance Land Private Limited, under which Prime Focus acquired RMWL's film and media services business. The NCLT found that Prime Focus had acknowledged the debt in its Annual Reports for multiple financial years, deducted and deposited TDS under Section 194A of the Income Tax Act on interest payable, executed a fresh Loan Agreement, and sought extensions for interest payments — all of which the tribunal held constituted sufficient proof of a financial debt and default.
Prime Focus has strongly contested the admission, maintaining that no amount was ever disbursed by the petitioner directly to it under the Loan Agreement, and that the alleged obligation was contingent upon the transfer of certain business assets — including the Adlabs Building and studios — which the company contends were never fully transferred. The company has itself filed a commercial suit (Commercial Suit (L) No. 21566 of 2023) before the Bombay High Court for adjudication of the BTA dispute, which remains pending. The NCLT, however, relying on the Supreme Court's judgments in Innoventive Industries Ltd. vs. ICICI Bank and Power Trust (Promoter of Hiranmaye Energy Ltd.) vs. Bhuvan Madan, held that a disputed debt does not bar admission of a Section 7 petition once the existence of financial debt and default is established.
Business Operations Unaffected
Prime Focus has assured all stakeholders that its business operations continue in the ordinary course without any disruption. The company highlighted that its global VFX and post-production operations remain fully functional, all customer engagements continue to be serviced as normal, and employees, vendors, and partners continue to work in the usual manner. The company has stated its full commitment to protecting the interests of all stakeholders, including shareholders, employees, customers, vendors, and lenders, and has indicated it will keep the stock exchanges informed of all material developments in accordance with applicable regulations. The disclosure was signed by Parina Shah, Company Secretary and Compliance Officer.
We’re building Scanx - to help you express your trading & investing idea, to help you analyse the markets better.
Stock Markets are the true indicator of the growth of any country's economy. We are bullish on India, we are bullish on India's prospects to be one of largest economies of the world. We believe that Stock Markets provide an unique opportunity for all Indians to participate in the growth story of India. We are enabling the same for Indians.
As financial services are becoming more accessible, there is now a large set of Indians today who are financially aware and literate. They value time and seek high quality products & services. Most screening, trading, investing platforms available today are more or less similar to each other, and they have not evolved with time. While both traders & investors have gotten smart about how they make money and build wealth, as users they have continued to use the same products, features, and platforms that were available for years with little or no innovation.
We plan to change that - a technology-led and artificial intelligence enabled platform built for super traders and long term investors.
Disclaimer:
The data and information provided on this website is for general informational and research purposes only. While we strive to ensure that the content is accurate, up-to-date, and reliable, this platform utilizes artificial intelligence (AI) tools to generate, curate, and summarize information. As such, the content may occasionally contain errors, omissions, or outdated information. All users are therefore advised to cross verify the source of the data and information.
This website does not constitute professional, legal, financial, medical, or any other form of licensed advice. Users are encouraged to independently verify any information before relying on it, especially for decisions that may have legal, financial, or personal consequences.
The views, analyses, and summaries presented on this platform may be generated or assisted by AI and do not necessarily reflect the opinions of the website owners, operators, editors, or affiliates.
We make no warranties or representations, express or implied, regarding the completeness, accuracy, reliability, suitability, or availability of the information contained on this website. Any reliance you place on such information is strictly at your own risk.
This website may include links to third-party sources or content. We do not control or endorse the nature, accuracy, or availability of those external sites and are not responsible for any content or damages arising from their use.
By using this website, you acknowledge and agree that the use of AI-generated content involves inherent limitations, uncertainties and inaccuracies, and you accept full responsibility for how you interpret and use the information provided.
We reserve the right to modify, update, or remove content and this disclaimer at any time without prior notice.