J.C. Flowers Asset Reconstruction ... vs Smaaash Leisure Limited

IN THE MATTER OF: J.C. Flowers Asset Reconstruction Pvt. Ltd. ...Appellant Versus Smaash Leisure Ltd. Formerly known as PVR BLUO Entertainment Ltd. ...Respondent

Present: For Appellant : Mr. Krishnendu Dutta, Sr. Advocate with Mr. Naveen Hegde, Mr. Akshay Puri and Ms. Niharika Sharma, Advocates.

For Respondent :

ORDER

(Hybrid Mode)

27.11.2024 : Heard Counsel for the Appellant.

2. This Appeal has been filed against an Order dated 06.09.2024 passed

by the Learned Adjudicating Authority (National Company Law Tribunal,

Mumbai Bench, Court - II) in C.P. (IB) No. 103/MB/2024, by which Order,

Section 7 Application filed by the Appellant has been dismissed on the ground

that it is barred by Section 10A. Adjudicating Authority has noticed that the

date of default was mentioned as 07.12.2020 which was clearly hit by Section

10A, hence the Application was rejected.

3. Learned Counsel for the Appellant contends that default took place

during 10A period and also default continued thereafter interest being

payable on monthly basis in terms of the facility documents and Adjudicating

Authority ought to have maintained the Petition for the default subsequent to

10A period.

4. Learned Counsel for the Appellant has relied on the Order of this

Tribunal dated 12.01.2023, passed in Comp. App. (AT) (Ins.) No. 28/2023 in

the matter of `Small Industries Development Bank of India' Vs.

`Sambandh Finserve Private Limited', where although the Appeal

challenging an Order dismissing Section 7 Application was dismissed but

liberty was granted to Appellant to file fresh Application in accordance with

law for the default committed subsequent to 10A period.

5. Learned Counsel for the Appellant submits that the Appellant may be

given liberty to initiate proceedings in accordance with law for default which

has been committed by the Corporate Debtor subsequent to 10A period.

6. In view of the aforesaid, we while upholding the Order of the

Adjudicating Authority dismissing Section 7 Application grant liberty to the

Appellant to file a fresh proceeding under Section 7 in accordance with law

for default committed subsequent to 10A period.

With these observations, the Appeal is disposed of.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical)

[Arun Baroka] Member (Technical) himanshu/nn

Comp. App. (AT) (Ins.) No. 2103 of 2024 2 of 2