# In the matter of Rainbow Digital Services Pvt. Ltd. Through Director & Anr. vs. Union of India Through Secretary Ministry of Communication & Ors.

> HC judgment dated 2023-11-07. Citation: TCN-2023-HC-00019. Rainbow Digital Services Pvt Ltd, acting as the assignee of certain assets of Growthways Trading…

- **Court:** HC
- **Order date:** 7 Nov 2023
- **Citation:** TCN-2023-HC-00019
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/rainbow-digital-services-pvt-ltd-through-director-anr-vs-union-of-india-through-2353584a

## Summary

### Background

Rainbow Digital Services Pvt Ltd, acting as the assignee of certain assets of Growthways Trading Private Limited (GTPL), appealed against a judgment dismissing their writ petition. GTPL, undergoing liquidation, had outstanding dues owed by the Department of Post. The appellant sought remittance of these dues and directions against the Department of Posts for violating Section 37 of the Indian Post Office Act, 1898, concerning undelivered postal articles. The Single Judge declined to entertain the writ petition because the issue was already under consideration before the National Company Law Tribunal (NCLT).

## Facts

Growthways Trading Private Limited (GTPL) was admitted into insolvency on December 17, 2019, and an Interim Resolution Professional (IRP) was appointed. The IRP discovered that the Department of Posts owed GTPL Rs. 57,80,065/- for undelivered or delivered-but-unpaid consignments. In July 2020, the IRP requested remittance of the amount from the Department of Post, but received no response. The IRP then filed an application before the NCLT under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking directions for recovery. GTPL went into liquidation on November 2, 2021, and the IRP became the Liquidator. On June 28, 2022, it was resolved to assign GTPL's Not Readily Realizable Assets (NRRAs), including the dues from the Department of Posts, through auction.

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## Issues and analysis

### Issue 1: Whether the High Court should exercise its writ jurisdiction under Article 226 of the Constitution …

**Ratio:** The court should not exercise its writ jurisdiction when parallel proceedings for the

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**Reasoning:** The court reasoned that since the issue of outstanding dues from the Department of Post

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**Interpretation:** Article 226 of the Constitution of India grants the High Court the power to

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**Application:** In this case, the appellant had an existing remedy before the NCLT, where the

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## Parties

- **Judges:** THE CHIEF J…; Sanjeev N…
- **Appellants:** Rainbow Digital…
- **Respondents:** Growthways…; UNOIN OF INDIA…
- **Other parties:** Kohi…

## Timeline

- **2019-12-17 — Insolvency Ad…**: GTPL was admitted into insolvency, and an Interim Resolution Professional (IRP) was…
- **2020-07-01 — IRP Requ…**: The IRP wrote to the Chief General Manager of Respondent No. 3 seeking remittance of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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