Prime Focus Limited is facing an insolvency petition filed by Reliance Alpha Services Private Limited, which alleges a financial debt of ₹353.79 crore, including interest. The petition was admitted by the National Company Law Tribunal (NCLT), Mumbai Bench, on 6th May 2026.
The petition, filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, claims the debt arises from a loan agreement executed in 2019. Prime Focus, however, disputes the claim, asserting that no funds were disbursed under the said agreement. The company argues that Reliance Alpha Services does not qualify as a financial creditor under the IBC.
Prime Focus has already filed an appeal with the National Company Law Appellate Tribunal (NCLAT) seeking urgent relief, including a stay on the NCLT’s order. The company maintains that the petition should not have been admitted and is pursuing all available legal remedies.
The dispute is linked to a Business Transfer Agreement (BTA) from 2014 between Prime Focus and an affiliate of the petitioner. Prime Focus is contesting the amounts claimed under the BTA and has initiated a commercial suit in the Bombay High Court for its adjudication. The company alleges that the petitioner is attempting to recover amounts under the BTA through the IBC mechanism.
Despite the legal proceedings, Prime Focus assures stakeholders that its business operations continue without disruption. The company’s global VFX and post-production services remain fully operational, and engagements with customers, employees, and vendors are ongoing as usual. Prime Focus is committed to safeguarding the interests of its stakeholders and is confident of a favourable outcome in the appellate proceedings.
The company has pledged to keep the exchanges informed of any significant developments as per regulatory requirements.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).