Gujarat High Court stays insolvency proceedings against Rasna
The Gujarat High Court has stayed the order of the National Company Law Tribunal (NCLT) that directed the initiation of insolvency proceedings against the homegrown beverage brand Rasna. The order was passed on a petition filed by the promoters of Rasna Private Ltd challenging the NCLT order.
The NCLT had ordered the initiation of the Corporate Insolvency Resolution Process (CIRP) against Rasna over a default of Rs 71.27 lakh. The tribunal had appointed an interim resolution professional (IRP) and suspended the board of the corporate debtor.
The Rasna group had said that it would challenge the NCLT order in the National Company Law Appellate Tribunal (NCLAT). The company had argued that there was a dispute between the company and Bharat Road Carriers, and that the amount claimed by the operational creditor was not due. The group also said that it had offered to settle the dispute, but Bharat Road Carriers had refused.
The Gujarat High Court has accepted the arguments of the Rasna group and has stayed the NCLT order. The court has also directed that the statutory appeal filed by the group against the NCLT order will be heard on an urgent basis.
The stay order by the Gujarat High Court is a major relief for the Rasna group. It will allow the company to continue its operations and to address the dispute with Bharat Road Carriers.
Rasna Private Ltd was dragged to insolvency court by Bharat Road Carrier Private Limited after the former failed to clear dues of Rs 71.27 lakh. The tribunal had 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.
Also See: Rasna to undergo insolvency process for failing to pay Rs 71 lakh
