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Informist, Wednesday, Jul. 2, 2025

 

NEW DELHI – The Mumbai bench of the National Company Law Tribunal on Wednesday admitted a petition by Netizen Engineering Pvt. Ltd. to start insolvency proceedings against Reliance MediaWorks Ltd., a company which is part of Reliance Anil Dhirubhai Ambani Group. The tribunal appointed NPV Insolvency Professionals Pvt. Ltd. as the interim resolution professional of the debt-ridden company to carry out the functions as per the Insolvency and Bankruptcy Code, 2016.

 

"...we are of the considered view that the financial creditor has fulfilled all the requirements under Section 7 of the Code. The Petitioner is a 'Financial Creditor' as defined under Section 5(7) of the Code, there exists a 'Financial Debt' of INR 60 million as defined under Section 5(8) of the Code, there is a 'Default' as defined under Section 3(12) of the Code," said the tribunal. Further, the amount stated to be due in the case was above the threshold limit as stipulated under the 2016 Code, the tribunal added.

 

In 2011, Netizen Engineering, earlier known as Reliance Infocomm Engineering Pvt. Ltd., had given a loan of up to INR 1.50 billion to Reliance MediaWorks. As per the loan agreement, the amount had to be repaid within two years from the date it was given and would carry an interest rate of 10.50% per year.

 

Reliance MediaWorks allotted preference shares to Netizen Engineering worth INR 1.20 billion against the principal loan amounts in 2012. However, Reliance MediaWorks failed to pay the interest amount. In 2024, Netizen Engineering issued a demand notice to Reliance MediaWorks to pay its remaining dues. Subsequently, a one-time settlement was reached to repay the remaining amount. However, later, Reliance MediaWorks failed to pay the dues. 

 

Reliance MediaWorks is a media and entertainment company with a presence across several businesses, including theatrical exhibition of films, film and media services and television content production and distribution. Headquartered in Mumbai, Reliance MediaWorks has operations across 78 cities and towns in India and internationally in the UK and the US.  End

 

Reported by Surya Tripathi

Edited by Deepshikha Bhardwaj

 

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