The National Company Law Tribunal (NCLT) on Friday admitted the insolvency application against instant drink mix Rasna for unpaid dues to the tune of Rs 71 lakh.
The application for insolvency was filed by logistics company Bharat Road Carrier Pvt Ltd.
It said they had transported goods to Rasna for which they had raised various invoices from April 2017 to August 2018.
With this, a moratorium period is in place.
"The order of moratorium shall have effect from the date of this order till the completion of the Corporate Insolvency Resolution Process or until this Adjudicating Authority approves the Resolution Plan under sub-section (1) of Section 31 or passes an order for liquidation of Corporate Debtor under Section 33 of the IBC, 2016, as the case may be," the NCLT said.
The application was admitted under Section 9 of the Insolvency and Bankruptcy Code (IBC), which allows operational creditors to initiate insolvency processes against a company.
Rasna said that in November 2018, it had filed a case against Bharat Road Carrier Pvt Ltd for damages amounting to Rs 1.25 crore at the Commercial Court in Ahmedabad. The case was referred to mediation. The logistics firm did not appear before the mediator and, hence, the mediation failed, Rasna said.
"Notice was issued by the Honourable ble Commercial Court upon the Operational Creditor on April 30, 2019. Until the date of filing the reply, the Operational Creditor has not appeared before the Hon’ble Commercial Court," Rasna alleged.
Rasna said that there are two issues against the insolvency process from their side. The first is the suppression of facts by Bharat Carrier and the second is the pre-existing dispute between the parties.
The tribunal noted that it is not in dispute that the services of Bharat Carrier were availed by the Corporate Debtor.
"It is seen that notice under Section 8 of IBC, 2016 was duly served on the corporate debtor (Rasna)," the tribunal said.