NCLT Mumbai Admits Smaaash Leisure To Insolvency Over Rs. 32 Crore Unpaid Debt
Kirit Singhania
30 Jan 2026 11:57 AM IST
The National Company Law Tribunal (NCLT) at Mumbai has admitted an insolvency petition filed by J.C. Flower Asset Reconstruction Ltd against Smaash Leisure Ltd, a popular Indian gaming and entertainment company engaged in sports simulation technology and virtual reality games, for default of Rs. 32.19 crores.
Smaaash Entertainment is the operational entity that runs and markets the “Smaaash” brand, while Smaaash Leisure Ltd is a group company. Smaaash, which had undergone insolvency proceedings, was revived after a resolution plan submitted by Nazara Technologies Pvt Ltd was approved on May 7, 2025.
A coram of Judicial Member Nilesh Sharma and Technical Member Sameer Kakar noted that the creditor had successfully established the existence of financial debt, default, and compliance with procedural requirements of the Code.
“In view of the above, we find that requisite conditions necessary to trigger CIRP in respect of the CD are fulfilled, the Application is complete as all the relevant documents have been attached by the Applicant along with the Application. As a result, the matter deserves to be admitted under Section 7 of the Code.”, the tribunal observed.
Smaaash Leisure had availed term loan facilities of Rs. 53.50 crores from Yes Bank between September 2017 and October 2018. Due to financial stress, the account slipped into default and the lender issued a loan recall notice on October 31, 2020.
During the pandemic, Smaash availed moratorium benefits in line with RBI circulars, pursuant to which accrued interest was converted into Funded Interest Term Loans (FITL) by the bank. Despite these restructuring measures, Smaaash failed to service interest obligations even after the suspension period ended on March 24, 2021.
The financial assets were assigned by Yes Bank to J.C. Flowers Asset Reconstruction under an assignment agreement dated December 16, 2022. It then issued a demand notice under the SARFAESI Act in June 2023 and also pursued remedies before the Debt Recovery Tribunal.
Accepting the creditor's contentions, the tribunal relied on settled precedents and held that once it is proved that a default has occurred, the adjudicating authority is bound to admit the insolvency petition.
The tribunal consequently admitted the petition, declared a moratorium, and appointed Megha Agrawal as the interim resolution professional to conduct the corporate insolvency resolution process.
For Financial Creditor: Advocates Rohan Agarwal, Sakil Ansari, Nishi Agarwal i/b AJA Legal
For Corporate Debtor: Ex-Parte