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The National Company Law Tribunal (NCLT), Mumbai Bench, has admitted a petition against Prime Focus Limited under Section 7 of the Insolvency and Bankruptcy Code over an alleged financial debt of ₹353.79 crore, according to a company filing.
The petition was filed by Reliance Alpha Services Private Limited, which has claimed the debt, including interest, under a loan agreement executed in 2019. The admission was made through an oral pronouncement dated May 6, 2026, with the written order awaited.
Following the development, Prime Focus said it has filed an appeal before the National Company Law Appellate Tribunal (NCLAT), seeking urgent relief, including a stay on the operation of the order.
The company maintained that no amount was disbursed by the petitioner under the loan agreement and argued that the petitioner does not qualify as a financial creditor under the Insolvency and Bankruptcy Code. It added that the petition should not have been admitted.
Prime Focus said the dispute is linked to a Business Transfer Agreement entered into in 2014 with an affiliate of the petitioner. The company said the claims under the agreement are being contested and that it has filed a commercial suit before the Bombay High Court.
The company stated that it is pursuing all available legal remedies and remains confident about its position in the appellate proceedings.
Prime Focus also said its business operations continue without disruption, with global VFX and post-production services functioning normally and all customer engagements being serviced as usual.
Also read: Ramesh Damani, Utpal Sheth, Madhu Kela's fund buy Prime Focus shares in Friday's block deal
Shares of Prime Focus ended at ₹308.50 on the NSE, up ₹8.40 or 2.80%.
The petition was filed by Reliance Alpha Services Private Limited, which has claimed the debt, including interest, under a loan agreement executed in 2019. The admission was made through an oral pronouncement dated May 6, 2026, with the written order awaited.
Following the development, Prime Focus said it has filed an appeal before the National Company Law Appellate Tribunal (NCLAT), seeking urgent relief, including a stay on the operation of the order.
The company maintained that no amount was disbursed by the petitioner under the loan agreement and argued that the petitioner does not qualify as a financial creditor under the Insolvency and Bankruptcy Code. It added that the petition should not have been admitted.
Prime Focus said the dispute is linked to a Business Transfer Agreement entered into in 2014 with an affiliate of the petitioner. The company said the claims under the agreement are being contested and that it has filed a commercial suit before the Bombay High Court.
The company stated that it is pursuing all available legal remedies and remains confident about its position in the appellate proceedings.
Prime Focus also said its business operations continue without disruption, with global VFX and post-production services functioning normally and all customer engagements being serviced as usual.
Also read: Ramesh Damani, Utpal Sheth, Madhu Kela's fund buy Prime Focus shares in Friday's block deal
Shares of Prime Focus ended at ₹308.50 on the NSE, up ₹8.40 or 2.80%.
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