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Synopsis

A Mumbai bench of the National Company Law Tribunal has directed initiation of Corporate Insolvency Resolution Process (CIRP) against M/s Cinema Ventures Private Limited for not settling amount of an Operational Creditor.

A bench of Judicial Member HV Subba Rao and Technical Member Anuradha Sanjay Bhatia has appointed Pravin R Navand, Insolvency Professional, as the interim resolution professional, to carry out the functions as mentioned under the Insolvency & Bankruptcy Code, 2016.

The order has been passed in a plea filed by Sanjay Sodhi (Operational Creditor) seeking to initiate CIRP against M/s Cinema Ventures Private Limited (Corporate Debtor) by invoking the provisions of Section 9 Insolvency and Bankruptcy code read with rule 6 of Insolvency & Bankruptcy (Application to Adjudication Authority) Rules, 2016 for a Resolution of an unresolved Operational Debt of Rs. 1,16,79,622. 

The petition was argued by Senior Advocate Malvika Trivedi, Advocate Swarnendu Chatterjee, and Advocate Yashwardhan Singh.

It was argued that despite entering into the settlement agreement, the Corporate Debtor did not pay even a single pie as per the understanding in the settlement agreement.

Furthermore, the bench opined that "there is a clear admission of debt and default by the Corporate Debtor and the debt is within limitation, this Bench did not find any reason to reject the above Petition and accordingly, the above Company Petition is admitted."

The bench further prohibited the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority.

Case Title: Sanjay Sodhi Vs. Cinema Ventures Private Limited