The Gujarat High Court stayed the order passed by NCLT to initiate bankruptcy proceedings against Rasna.
“Considering the overall facts and circumstances of the case, the Gujarat High Court is pleased to entertain Rassner’s petition challenging the NCLT order. The NCLT order passed on Friday was stayed at the first hearing in the High Court today. ” said a statement from Rasna Group’s legal team.
Rasna also filed a petition against the NCLT order with the NCLAT. However, the company has also lodged a claim in the High Court after settlement professionals told the company it would not be able to operate the bank accounts. The company asked the High Court for a stay until the NCLAT hears the matter.
Rasna Private Ltd was dragged into bankruptcy by Bharat Road Carrier Private Ltd for non-payment of more than Rs 7.1 lakh.
The aforementioned default date predates the emergence of the Covid-19 pandemic. Accordingly, NCLT said in its order on Friday that the corporate debtor (Rasna Private Ltd) cannot seek refuge under Section 10A of the IBC, 2016.
“In view of the foregoing, and as an interim relief, the aforesaid order dated September 1, 2023 directs not to be executed until the statutory appeal to NCLAT is included in the hearing in the particular facts of the case,” the High Court’s order said