AHMEDABAD: Rasna got a breather from the Gujarat high court on Monday after it stayed the interim resolution professional (IRP) from taking over the company’s management till the appellate tribunal hears its appeal against the insolvency proceedings ordered by the National Company Law Tribunal (NCLT).
After the NCLT ordered initiation of the corporate insolvency resolution process (CIRP) against the soft drinks manufacturer on September 1 over the Rs 71 lakh it owes to an operational creditor, the company rushed to the HC, seeking urgent intervention.
Rasna’s counsel submitted before the HC that NCLT had granted seven days to the company to make written submissions but passed its final order in between. Rasna is a profit-making company, and its debt is just Rs 71 lakh. The company is ready to deposit the amount with NCLT. He drew the court’s attention to a communication of September 3, by which the company was told that it would not be able to operate its bank accounts with the order of appointment of the IRP coming into effect.
Rasna requested an urgent stay on the IRP taking over the company, at least till the National Company Law Appellate Tribunal (NCLAT) hears its appeal against the NCLT order. It was submitted that the NCLAT might take a few days to hear the appeal, which has already been filed, but the damage would already be done to the company by then. Justice Vaibhavi Nanavati stayed the NCLT order and effect of the September 3 communication, till the NCLAT takes up the case for hearing. The HC posted a further hearing on September 11.
Rasna’s troubles began on Friday evening when the NCLT ordered the insolvency process based on a demand by an operational creditor Bharat Road Carrier, which was demanding Rs 71 lakh with interest from 2019 in lieu of transport services provided to the company from April 2017 to August 2018.
After the NCLT ordered initiation of the corporate insolvency resolution process (CIRP) against the soft drinks manufacturer on September 1 over the Rs 71 lakh it owes to an operational creditor, the company rushed to the HC, seeking urgent intervention.
Rasna’s counsel submitted before the HC that NCLT had granted seven days to the company to make written submissions but passed its final order in between. Rasna is a profit-making company, and its debt is just Rs 71 lakh. The company is ready to deposit the amount with NCLT. He drew the court’s attention to a communication of September 3, by which the company was told that it would not be able to operate its bank accounts with the order of appointment of the IRP coming into effect.
Rasna requested an urgent stay on the IRP taking over the company, at least till the National Company Law Appellate Tribunal (NCLAT) hears its appeal against the NCLT order. It was submitted that the NCLAT might take a few days to hear the appeal, which has already been filed, but the damage would already be done to the company by then. Justice Vaibhavi Nanavati stayed the NCLT order and effect of the September 3 communication, till the NCLAT takes up the case for hearing. The HC posted a further hearing on September 11.
Rasna’s troubles began on Friday evening when the NCLT ordered the insolvency process based on a demand by an operational creditor Bharat Road Carrier, which was demanding Rs 71 lakh with interest from 2019 in lieu of transport services provided to the company from April 2017 to August 2018.