Entertainment and event management company Wizcraft International to face insolvency proceedings, which has been admitted by the Mumbai bench of the bankruptcy court. The default amount is claimed to be over Rs 60 crore.
IDBI Bank had given a loan to a subsidiary of Wizcraft named Great Indian Nautanki Company (GINC), which runs India’s first live performance-based entertainment destination, Kingdom of Dreams, in Gurugram. Wizcraft is the majority partner in GINC and had provided a guarantee to this loan. IDBI claims that Wizcraft owes it Rs 60.39 crore as of 2019.
Wizcraft has argued the tribunal has no jurisdiction to entertain the IDBI filed proceedings, as liabilities of the corporate guarantor do not form a part of the financial debt. Counsels representing IDBI Bank argued the company was trying to evade liability of obligations under the guarantee deed.