Smaaash Revival: 5 Powerful Legal Moves That Saved India’s Iconic Arcade Brand from Collapse

JSA Advocates & Solicitors played a pivotal role in rescuing India’s popular Smaaash Entertainment chain (operating 13 gaming centres) from insolvency. Guiding Resolution Professional Bhrugesh Amit, they secured NCLT Mumbai’s approval for Nazara Technologies’ revival plan, endorsed by creditors. Crucially, JSA successfully defended against challenges from former promoters, including a major victory invalidating an attempt to strip away the valuable “Smaaash” brand and halting trademark infringement by competing entities.

This robust legal defense protected Smaaash’s core identity during its vulnerable restructuring. The successful resolution safeguards hundreds of jobs, preserves popular entertainment venues across India, and provides creditors with a recovery path far better than liquidation. It demonstrates the vital role of expert legal counsel in navigating complex insolvency to save viable businesses, ensuring iconic consumer brands like Smaaash can find a path to survival under the IBC framework. Nazara Technologies now takes the helm for Smaaash’s future.

Smaaash Revival: 5 Powerful Legal Moves That Saved India’s Iconic Arcade Brand from Collapse

The bright lights and energetic buzz of Smaaash Entertainment’s gaming centers, a staple in 13 locations across India, faced an uncertain future. However, a decisive legal victory in the Mumbai bench of the National Company Law Tribunal (NCLT) has secured a new chapter for the beleaguered entertainment giant. This success story highlights the intricate legal machinery behind corporate rescue under India’s Insolvency and Bankruptcy Code (IBC), 2016. 

The Challenge: More Than Just Bankruptcy 

Smaaash Entertainment Private Limited, known for its immersive blend of arcade games, bowling, VR experiences, go-karting, and flagship venues like Mumbai’s Kamla Mills, entered Corporate Insolvency Resolution Process (CIRP). Bhrugesh Amin was appointed as the Resolution Professional (RP), tasked with navigating the company through this critical period to find a viable future. The mandate was complex: 

• Finding a Savior: Securing a resolution plan approved by the Committee of Creditors (CoC). 

• Fending Off Threats: Defending against objections and challenges, particularly from the erstwhile promoter. 

• Protecting the Core Asset: Crucially, safeguarding the valuable “Smaaash” brand itself from being stripped away. 

The Legal Playbook: JSA’s Strategic Defense 

JSA Advocates & Solicitors, advising the Resolution Professional end-to-end, played a pivotal role in steering Smaaash towards survival. Their strategy involved navigating multiple battlefronts simultaneously: 

• Securing the Resolution: JSA successfully represented the RP before the NCLT Mumbai, obtaining the crucial judicial approval for the resolution plan submitted by Nazara Technologies Limited. This plan had already received the green light from Smaaash’s creditors, signifying the best path forward for the company’s revival. 

• Countering Promoter Challenges: The team effectively defended against objections and ancillary proceedings initiated by the erstwhile promoter, ensuring the CIRP process remained focused and unimpeded by disputes aimed at derailing the resolution. 

• Brand Protection – The Critical Win: Perhaps the most significant legal hurdle involved aggressive attempts to transfer the “Smaaash” brand out of the company to an entity linked to the former promoter. JSA successfully invalidated this move, preserving the company’s most valuable intangible asset. Furthermore, they tackled trademark infringement by another entity (allegedly promoter-linked) operating competing gaming centers, protecting Smaaash’s market identity during its vulnerable restructuring phase. 

Why This Resolution Matters (The Human Insight) 

This isn’t just a legal footnote; it’s a story with tangible impact: 

• Preserving Jobs & Experiences: Smaaash employs hundreds and entertains thousands across India. A successful resolution means jobs are saved, and popular entertainment destinations remain operational, contributing to local economies and leisure activities. 

• Creditor Recovery: The approved resolution plan offers creditors a far better outcome than liquidation, maximizing potential recoveries on debts owed. 

• IBC in Action: This case exemplifies the IBC framework working as intended – providing a structured, legal pathway to rescue a viable business facing distress, moving beyond pure liquidation. 

• The Vital Role of Legal Counsel: The outcome underscores how adept legal guidance is essential for RPs. Navigating complex insolvency requires not just procedural knowledge but the ability to anticipate and counter legal challenges, protect core assets (like IP), and shepherd a viable plan through to court approval. JSA’s multi-pronged defense was instrumental in overcoming significant obstacles. 

• Brand Value Recognized: The fierce battle over the “Smaaash” trademark highlights the immense value of established consumer brands, even in distress. Protecting it was fundamental to any successful resolution. 

The Team Behind the Victory 

The JSA team advising Resolution Professional Bhrugesh Amin was led by Partners Varghese Thomas and Tirthankar Datta. They were supported by Partners Fatema Kachwalla and Kunal Kaul, Partner Aditi Sehgal, Senior Associate Virgil Braganza, and Associate Ciol Kumar. 

A New Game Starts Now 

With the NCLT’s approval of Nazara Technologies’ resolution plan and the Smaaash brand secured, the company emerges from CIRP. The focus now shifts to Nazara, a major player in gaming and sports media, to revitalize and steer the iconic Smaaash entertainment centers into a profitable future. This successful resolution demonstrates that even prominent consumer-facing brands facing financial distress can find a path to survival through a well-executed CIRP process backed by robust legal expertise.