TaxTMI 
TaxTMI 
TaxTMI 
2022 (2) TMI 836
X X X X Extracts X X X X
X X X X Extracts X X X X
....usiness of conceptualizing, conceiving and producing cinematograph films in the Bollywood industry and is looking for investors. In order to induce the Financial Creditor to enter into an agreement and invest monies with the Corporate Debtor, they created certain security interests in favour of the Financial Creditor. c. Film investment agreement dated 23.02.2018 was executed between both the parties for the production, enjoyment and exploitation of one such Bollywood film. Corporate Debtor approached Financial Creditor in February 2018 in order to secure investment for the purpose of producing the film. Corporate Debtor mentioned that it was in requirement of a short investment on the guaranteed table profits. d. Corporate Debtor also represented that T-Series were 50% partners in the film and that they were willing to create an exclusive first charge lien in favor of the Financial Creditor on the revenue that would be collected from the said film and that further to secure the interest of the Financial Creditor, the said parties would mortgage the rights of the Corporate Debtor on the Copyright and other rights on the said film exclusively in favour of the Financial Creditor.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....assigned to the Financial Creditor a continuing first priority security interest in and copyright mortgage on all of Corporate Debtor's right, title and interest associated with the said film in favour of the Financial Creditor. j. The, Corporate Debtor had agreed not to execute any agreement with any third parties that would in any manner prejudicially affect the rights and interests of the Financial Creditor under the said agreement including but not limited to the right of the Financial Creditor to receive the invested amount along with the agreed rate of interest. k. Towards part repayment of the said invested amounts and interest, the Corporate Debtor issued two cheques to the Financial Creditor being cheque no. 638636 dated 24.03.2018 for an amount of Rs. 3,50,00,000/- (Rupees Three Crore and Fifty Lakhs) and cheque no. 638638 dated 26.03.2018 for an amount of Rs. 50,00,000/- (Rupees Fifty Lakhs) l. While handing over the cheques to the Financial Creditor, the Corporate Debtor had assured the Financial Creditor that the said cheques would not default. On the said assurance of Corporate Debtor, the Financial Creditor took the aforesaid cheques and when the Financial ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d. and not the Corporate Debtor. Further the Corporate Debtor had given his producer credit right in the film to the applicant as a partial adjustment towards the amount which was to be paid by the Corporate Debtor. It is also submitted that 50% of the Intellectual Property share in a film titled Pari was also given to the Financial Creditor. The cost of the said IP share was worth Rs. 2 crores and the said amount was also to be adjusted towards the repayment of the amount received from commercial exploitation of the IP rights sold in favour of the Financial Creditor. v. Thereafter another agreement was entered into between Super Cassettes Industries Pvt. Ltd. and the Financial Creditor wherein the parties had agreed to withdraw all complaints, suits and any other proceedings pending before any authorities including but not limited to the present legal proceedings. vi. It is therefore apparent that there are disputes qua the alleged amount between the parties which are required to be settled through a competent forum and therefore this authority has no jurisdiction to entertain this application. 3. We have gone through the documents filed by both the parties and heard the argu....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... failed as no settlement agreement has been placed on record and even if for the sake of argument, if it is considered, still the same is not binding upon the Financial Creditor. 7. In the light of the aforesaid facts, we find that the documents submitted by the Financial Creditor and the Corporate Debtor clearly substantiate the Financial Creditor's claim that the Corporate Debtor has defaulted on repayment of loan amount. 8. In light of the above discussion, after giving careful consideration to the entire matter, hearing the arguments of the parties and upon appreciation of the documents placed on record to substantiate the claim, this Tribunal admits this petition and initiates CIRP on the Corporate Debtor with immediate effect. 9. Sub-section (3) (b) of Section 7 mandates the financial creditor to furnish the name of an Interim Resolution Professional. In compliance thereof the applicant has proposed the name of Ms. Maya Gupta, for appointment as Interim Resolution Professional having registration number IBBI/IPA-002/IP-N00363/2017-18/11061, with email -id- [email protected]. Ms. Maya Gupta has agreed to accept the appointment as the interim resolution professional....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... authority; (b) transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; (c) any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; (d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. 17. It is made clear that the provisions of moratorium shall not apply to transactions which might be notified by the Central Government or the supply of the essential goods or services to the Corporate Debtor as may be specified, are not to be terminated or suspended or interrupted during the moratorium period. In addition, as per the Insolvency and Bankruptcy Code (Amendment) Act, 2018 which has come into force w.e.f. 06.06.2018, the provisions of moratorium shall not apply to the surety in a contract of guarantee to the corporate debtor in terms of Section 14 (3) (b) of the Code. 18. The Interim Resolution Professional s....