Rasna to undergo insolvency process for failing to pay Rs 71 lakh

The Rasna Private Ltd, the creator of the iconic Rasna brand of drinks, will undergo corporate insolvency resolution process (CIRP) after the Ahmedabad bench of the NCLT admitted an insolvency application against the company on 1 September 2023.

The insolvency application against Rasna (corporate debtor) was filed by Bharat Road Carrier Private Limited after the former failed to clear dues of Rs 71.27 lakh crore. The tribunal has appointed Ravindra Kumar Goyal as the interim resolution professional.

Bharat Road Carrier is a transport company and it has transported various goods to the Rasna for which it has raised various invoices during the period from April 2017 to August 2018.

The operational creditor has stated in its submission that it issued demand notice to Rasna on 20 August 2018. The Corporate Debtor in the written submission has acknowledged the receipt of said Demand Notice. Despite repeated reminders and demand notice, the corporate debtor failed to pay the amount demanded.

Though the corporate debtor has admitted that it has availed transportation services from the Operational Creditor, but it also asserted that there were various disputes regarding the transportation services.

It has been stated by the corporate debtor that sometime in November 2018, it instituted a civil suit for damages amounting to Rs.1.25 crore before the Commercial Court at Ahmedabad. The same was referred to mediation. During the mediation process, Bharat Road Carrier did not appear before the mediator and mediation failed.

However, the NCLT rejected Rasna’s claim of pre-existing dispute regarding the amount dues and admitted the operational creditor’s claim.

About Rasna

Founded by Areeze Khambatta, Rasna is a family-owned business.  It is the largest concentrate manufacturer in the world delivering its products to more than 53 countries.

If corporate insolvency resolution process of Rasna goes through, it will join a number of cult brands of yesteryears who failed to escape the new insolvency regime of the country.

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