Iconic beverage maker Rasna Private Ltd has been dragged into insolvency proceedings by Bharat Road Carrier Private Ltd for non- payment of over ₹71 lakh.
The National Company Law Tribunal in Ahmedabad has admitted the application and has appointed Ravindra Kumar as the interim resolution professional.
The date of default as mentioned is much before the advent of the Covid-19 pandemic. Hence, the Corporate Debtor ( Rasna Private Ltd) cannot seek shelter under Section 10A of IBC, 2016, the NCLT said.
Bharat Road has transported various goods for Rasna for which it has raised various invoices during the period from April 2017 to August 2018. “The corporate debtor (Rasna), in the written submission, has acknowledged the receipt of said demand notice. It is the case of the applicant (Bharat Road) that despite repeated reminders and sending the demand notice, the corporate has failed to pay the amount demanded,” the order said.
On its part, Rasna had disputed some of the invoices raised by Bharat Roads. In 2018, the corporate debtor instituted a civil suit for damages amounting to ₹1.25 crore before the Commercial Court at Ahmedabad. The same was referred to mediation. During the mediation process, Rasna did not appear before the mediator and hence, the mediation failed
Rasna was among the most popular drink in the 1980s and 1990s when the brand’s tagline “I love you Rasna” caught the imagination of consumers, especially children.
Brand experts said this is not the end of the road for brand Rasna. Under insolvency, a new promoter will take control. But since the dues outstanding is only ₹71 lakh, the current owners will likely settle the amount or file a plea in a higher court.