• Home
  • Business
  • Smaaash Entertainment Wins Brand Battle in Insolvency Case

Smaaash Entertainment Wins Brand Battle in Insolvency Case

The National Company Law Appellate Tribunal (NCLAT) upholds an order declaring the transfer of Smaaash brand by founder Shripal Morakhia as "fraudulent." The brand ownership returns to bankrupt Smaaash Entertainment.

Smaaash Entertainment Wins Brand Battle in Insolvency Case

The National Company Law Appellate Tribunal (NCLAT) has delivered a significant verdict in the ongoing insolvency case of Smaaash Entertainment Pvt Ltd (SEPL), a popular entertainment and gaming center chain in India. The verdict upholds an earlier order by the National Company Law Tribunal (NCLT) that deemed the transfer of the "Smaaash" brand by founder Shripal Morakhia as "fraudulent." This effectively returns the brand ownership back to SEPL.

 

The drama unfolded when Bhrugesh Amin, the appointed resolution professional for the bankrupt SEPL, filed a petition with the NCLT in April 2023. The petition challenged the transfer of the "Smaaash" trademark to Fun Gateway Arena Pvt Ltd, a privately owned entity. Amin's argument hinged on the fact that the transfer was executed through a "back-dated deed agreement" signed in April 2022, raising suspicion about its legitimacy.

 

In his plea, Amin sought a two-pronged approach. Firstly, he requested the NCLT to declare the transfer agreement null and void, essentially reversing the brand ownership. Secondly, he aimed to prevent Fun Gateway from using any brand content or trademarks associated with Smaaash.

 

The NCLT order, issued in November 2023, sided with Amin's arguments. The tribunal found evidence suggesting collusion between Morakhia and his associates to "syphon off critical assets" of SEPL. The "fraudulent action," as the NCLT termed it, not only weakened SEPL's financial standing but also jeopardized potential bids from resolution applicants seeking to acquire the company.

 

The order further directed Fun Gateway to return all benefits accrued through the use of Smaaash brand content. Essentially, the tribunal aimed to restore SEPL's brand identity and prevent any further financial exploitation.

 

Unhappy with the NCLT verdict, Fun Gateway challenged the order in the NCLAT. However, they later withdrew the appeal, leading to the dismissal of their case by the appellate tribunal. This effectively sealed the deal, solidifying SEPL's ownership of the "Smaaash" brand.While the brand ownership battle seems settled, SEPL's path to complete financial recovery remains unclear. The company is still undergoing insolvency proceedings, and the focus now likely shifts towards attracting viable resolution plans to ensure its revival.

 

This case highlights the complexities surrounding insolvency and intellectual property rights in India. It underscores the importance of robust legal frameworks to prevent asset stripping and ensure fair play during bankruptcy proceedings. The Smaaash case serves as a cautionary tale for businesses navigating financial difficulties and a reminder of the legal consequences associated with potentially fraudulent activities.

 


TCS CEO Krithivasan's Compensation: Big Payday, But Not a Record Breaker

TCS CEO Krithivasan's Compensation: Big Payday, But Not a Record Breaker

Tata Consultancy Services (TCS) CEO K Krithivasan's first-year compensation package revealed, to...
Wipro Nears Settlement with Ex-Executives Dalal and Haque After Legal Tussle

Wipro Nears Settlement with Ex-Executives Dalal and Haque After Legal Tussle

Wipro is reportedly close to finalizing a settlement agreement with its former CFO Jatin Dalal and h...
Emirates Soars to Record Profits, Showers Employees with Bonuses

Emirates Soars to Record Profits, Showers Employees with Bonuses

Dubai's Emirates Group, parent company to Emirates Airline, shatters profit records for the seco...
Aditya Birla Fashion and Retail Strengthens Grip on Ethnic Wear Brand Tasva

Aditya Birla Fashion and Retail Strengthens Grip on Ethnic Wear Brand Tasva

 Aditya Birla Fashion and Retail Limited (ABFRL) has acquired an additional 5.54% stake in its ...
Warburg Pincus Makes Landmark Acquisition of Shriram Housing Finance

Warburg Pincus Makes Landmark Acquisition of Shriram Housing Finance

Private equity giant Warburg Pincus has agreed to acquire Shriram Housing Finance, a leading provide...
Blackstone Leads Consortium in Bid for Controlling Stake in Haldiram Snacks

Blackstone Leads Consortium in Bid for Controlling Stake in Haldiram Snacks

A consortium led by private equity giant Blackstone has submitted a bid to acquire a controlling sta...
TVS Holdings Makes Big Move in Consumer Finance with Home Credit India Acquisition

TVS Holdings Makes Big Move in Consumer Finance with Home Credit India Acquisition

TVS Holdings, a leading Indian conglomerate, has acquired a majority stake in Home Credit India, a p...
Byju's Shakes Up EdTech Market: Cuts Fees 30-40%, Boosts Sales Commissions

Byju's Shakes Up EdTech Market: Cuts Fees 30-40%, Boosts Sales Commissions

Byju's Shakes Up EdTech Market: Cuts Fees 30-40%, Boosts Sales Commissions ...
Indian CEOs Set to Make Their Mark at France's Choose France Forum

Indian CEOs Set to Make Their Mark at France's Choose France Forum

Seven Indian business leaders, including Sunil Bharti Mittal and N. Chandrasekharan, will meet with ...
Microsoft Makes Big Land Purchase in Hyderabad for Data Center Expansion

Microsoft Makes Big Land Purchase in Hyderabad for Data Center Expansion

Microsoft has acquired 48 acres of land in Hyderabad for a whopping Rs 267 crore, signaling a signif...