Prime Focus Limited's CIRP Closed as NCLAT Allows Appeal and Discharges IRP
Prime Focus Limited announced a significant development regarding its insolvency status, following a ruling by the National Company Law Appellate Tribunal (NCLAT). Based on oral proceedings held on July 9 and July 10, 2026, the NCLAT has allowed the company's appeal, resulting in the closure of the Corporate Insolvency Resolution Process (CIRP) against Prime Focus Limited.The decision made by the Hon'ble NCLAT set aside an admission order that had been passed by the National Company Law Tribunal (NCLT), Mumbai Bench on May 6, 2026. The tribunal proceedings led to the closure of the CIRP and the discharge of the Interim Resolution Professional (IRP).
The regulatory process involved hearings where the NCLAT was informed about the status of claims received during the CIRP. During the hearing on July 9, 2026, it was noted that no claims had been received after a public notice related to the company's insolvency.
On the subsequent hearing on July 10, 2026, confirming the affidavit filed by the IRP regarding the lack of incoming claims, the NCLAT was also informed that relevant parties had reached a conditional understanding aimed at resolving their disputes.
Following the appeal allowance and the closure of the CIRP, the NCLAT directed the release of the lien held over a fixed deposit created in favor of the Registrar, NCLAT. The payment terms for this release are defined by the agreement between the concerned parties.
As a result of these rulings, the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 has been lifted. The Board of Directors of Prime Focus Limited now has its full powers restored, and the company is continuing to operate in the ordinary course of business.
PFOCUS Stock Price Movement
On Friday, shares of Prime Focus Limited surged to close at ₹256.69, buoyed by a 5.00% rise from the previous session's closing price. The stock recorded strong trading volume during the session, with 702,526 shares being transacted.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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