Prime Focus deposits ₹353.79 crore, gets NCLAT stay 2026

Prime Focus Limited has deposited ₹353.79 crore with the Registrar of the National Company Law Appellate Tribunal (NCLAT), New Delhi, complying with the appellate tribunal’s direction before the May 20, 2026 deadline. The company disclosed the deposit in a stock exchange update, positioning it as a procedural compliance step tied to interim relief in an ongoing insolvency-related dispute.

The development matters because the NCLAT has already stayed an insolvency order passed by the National Company Law Tribunal (NCLT), Mumbai Bench, and has restrained the Interim Resolution Professional (IRP) from taking further steps based on that order. With the deposit now made, Prime Focus has met a key condition attached to the interim protection granted by the appellate tribunal.

What Prime Focus deposited and where it was submitted

Prime Focus said it deposited ₹353.79 crore with the Registrar, NCLAT, New Delhi, within the timeline set by the tribunal. The deposit was directed to be placed in an interest-bearing account, as per the exchange communication.

The amount referenced across the filings and updates is ₹353.79 crore, also cited as ₹353,79,74,505. The company stated that the deposit was made prior to May 20, 2026, which was the stipulated deadline in the NCLAT’s May 12, 2026 order.

Prime Focus also reiterated in its communication that business operations remain unaffected and continue in the ordinary course. It said its global VFX and post-production operations are fully functional, and stakeholders are being serviced as usual.

NCLAT’s May 12 order that stayed the NCLT insolvency direction

The NCLAT, Principal Bench, New Delhi, passed an order on May 12, 2026 in Company Appeal (AT) (Ins.) No. 850 of 2026. The appellate tribunal stayed an “impugned” order dated May 6, 2026 passed by the NCLT, Mumbai Bench.

Along with the stay, the NCLAT restrained the IRP from taking any further steps in pursuance of the NCLT order. The appellate tribunal also granted liberty to the parties to seek vacation of the interim order if the directed deposit was not made within the specified timeframe.

The matter, as per the company’s update, is listed for hearing on July 9, 2026.

What triggered the litigation: the admitted insolvency plea

The underlying dispute relates to an insolvency petition admitted by the NCLT, Mumbai Bench against Prime Focus under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition, according to the company filing cited in the provided material, was filed by Reliance Alpha Services Private Limited.

Reliance Alpha Services claimed an alleged financial debt of ₹353.79 crore, including interest, arising from a loan agreement executed in 2019. The NCLT’s admission was described as an oral pronouncement dated May 6, 2026, with the written order awaited at that time.

Following the NCLT development, Prime Focus moved the NCLAT seeking urgent relief, including a stay on the operation of the NCLT order.

Interim restraint on the IRP and the appeal’s procedural path

The NCLAT’s interim relief included restraining the IRP from taking further steps based on the NCLT’s order. Separately, the provided material also references appellate proceedings heard on May 11, 2026, where an interim order dated May 8, 2026 directing the IRP not to take further steps was continued and the matter was adjourned to May 12, 2026.

In the May 11 update included in the provided material, the appellant was identified as Nishant Avinash Fadia, in a case involving Raspalfa Services Private Limited and another party. The same set of materials elsewhere describes the creditor as Reliance Alpha Services Private Limited.

What remains consistent in the disclosures provided is that the NCLAT stayed the NCLT Mumbai Bench order and tied continuation of interim relief to the deposit of ₹353.79 crore by May 20, 2026.

Company’s position: operations “unaffected” and workforce scale

Prime Focus has maintained that day-to-day operations have not been impacted by the legal proceedings. It stated that its global VFX and post-production operations remain fully functional.

The Hindi-language portion of the provided material also states that Prime Focus described itself as capable and financially strong during the hearing, with around 12,000 employees and sufficient cash and assets. These statements were presented as part of the company’s submissions during the appellate hearing process.

Key facts at a glance

Stock market snapshot mentioned in the disclosure set

One of the provided news updates noted that shares of Prime Focus ended 2.6% higher at ₹307.80 on the National Stock Exchange on the day of that report. The price move was mentioned alongside the disclosure that the NCLT Mumbai Bench had admitted the insolvency petition and that Prime Focus had moved the appellate tribunal.

No additional stock performance details were included in the provided material, and Prime Focus did not link the price move to any specific operational change. The company’s statement focused on legal process updates and operational continuity.

Market impact and why the deposit matters

The immediate market relevance comes from the procedural status of the insolvency process. An admitted Section 7 petition typically shifts control towards an IRP and introduces process milestones, but the NCLAT’s restraint on the IRP limits further steps tied to the NCLT order, at least until the next hearing.

By depositing ₹353.79 crore within the timeline set by the NCLAT, Prime Focus has complied with a key interim condition that the tribunal explicitly linked to continuation of the stay. The NCLAT also provided that parties could seek vacation of the interim order if the deposit was not made, making compliance a central factor in maintaining interim relief.

Conclusion

Prime Focus has deposited ₹353.79 crore with the Registrar of the NCLAT before the May 20, 2026 deadline, satisfying the appellate tribunal’s direction tied to the stay on the NCLT Mumbai Bench insolvency order. The NCLAT has restrained the IRP from further action in pursuance of the stayed order, and the matter is listed for hearing on July 9, 2026.