Rasna to challenge NCLT's insolvency order; court appoints official to take full charge of firm's assets

NCLT's Ahmedabad branch on Friday (September 1, 2023) accepted an insolvency application against soft drink manufacturing company Rasna. The order was delivered by a two-judge bench on Friday in a case of non-payment of freight of about Rs 71 lakh.

The National Company Law Tribunal (NCLT) also appointed Ravindra Goyal as the interim resolution professional (IRP) to look after the insolvency proceedings.

The Rasna management told Zee Business that the company is all set to challenge the insolvency order in the National Company Law Appellate Tribunal (NCLAT).

The decision came in the case of Bharat Road Carrier Pvt Ltd vs Rasna Pvt Ltd, in which the former had filed an application regarding the initiation of the corporate insolvency resolution process under Section 9 of the Insolvency & Bankruptcy Code, 2016.

The court said in its order, "The Application bearing CP(IB) No. 317 of 2019 filed by M/s. Bharat Road Carrier Pvt. Ltd. (the Applicant/ Operational Creditor), under section 9 of the Code read with rule 6(1) of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for initiating CIRP against M/s. Rasna Pvt. Ltd. (the Corporate Debtor) is hereby admitted."

As per the judgement, the court directs Goyal to make a public announcement of the initiation of the Corporate Insolvency Resolution Process (CIRP) and call for submission of claims under Section 15 as required by Section 13(1)(b) of the IBC, CP (IB) 317/NCLT/AHM/2019. 

The court order further said, "The IRP is expected to take full charge of the Corporate Debtor assets, and documents without any delay whatsoever. He is also free to take police assistance in this regard, and this Court hereby directs the Police Authorities to render all assistance as may be required by the IRP in this regard."