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Informist, Thursday, May 7, 2026

 

NEW DELHI – The Mumbai bench of the National Company Law Tribunal has admitted a petition by Reliance Alpha Services Pvt. Ltd. to start insolvency proceedings against Prime Focus Ltd., the latter company said in a stock exchange filing. Reliance Alpha Services claimed INR 3.54 billion as dues from Prime Focus. 

 

Challenging the Mumbai tribunal's order, Prime Focus has moved the National Company Law Appellate Tribunal. It has sought urgent relief from the appellate tribunal, including a stay of the tribunal's order.

 

The case has its genesis in a business transfer agreement entered into in 2014 between Prime Focus and an affiliate of Reliance Alpha. On failure to pay the dues under the agreement, Reliance Alpha had filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Prime Focus. The debt-ridden company has contested the amount claimed by Reliance Alpha under the agreement.

 

Prime Focus said it was well within the scope to address and resolve any financial obligation that the company was expected to. Further, it has consistently maintained, and continues to maintain, that no amount was ever disbursed by Reliance Alpha to Prime Focus, it said. Accordingly, its position is that Reliance Alpha does not qualify as a "financial creditor" within the meaning of the 2016 Code, and the insolvency petition ought not to have been admitted, said Prime Focus.

 

According to Prime Focus, it is the world's largest independent integrated media powerhouse. With over 10,000 professionals in 24 cities across four continents and seven time zones, the company leads the media and entertainment industry by consistently redefining creativity, innovation, and collaboration, Prime Focus states in its description on the company's page.

 

Thursday, shares of Prime Focus Ltd. ended 2.6% higher at INR 307.80 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Avishek Dutta

 

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