Rajalakshmy Packaging Pvt Ltd, a manufacturer of plastic products, faced severe financial difficulties starting from the COVID-19 lockdown in 2020, exacerbated by the 2021 ban on single-use plastics, which was its primary source of income. This led to a factory shutdown, loss of workforce, inability to generate revenue, and mounting expenses. The company defaulted on payments to financial and operational creditors, and was unable to pay GST. Despite directors using personal savings to repay some loans, the company's cash flow came to a standstill. Consequently, the company passed a Board Resolution on 11.08.2023 to initiate a Corporate Insolvency Resolution Process (CIRP) under Section 10 of the IBC, 2016.
Rajalakshmy Packaging Pvt Ltd is a manufacturer of plastic products.
The company faced financial difficulties since the Covid 19 lockdown in 2020.
Single-use plastic was banned vide Plastic Waste Management Amendment Rules, 2021, which was the company's primary source of income.
Due to the ban and financial difficulties, the company could not fulfill its obligations, and the factory was shut down, leading to a loss of its workforce.
The company was unable to generate revenue, and its expenses and financial difficulties continued mounting.
Rajalakshmy Packaging Pvt Ltd was unable to pay its Financial Creditors and GST tax.
The Directors of the Company used their personal savings (around Rs. 18,25,00,000/-) to repay loans taken by the Company after mortgaging their land.
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Rajalakshmy Pa…
The company began…
Rajalakshmy Packaging Pvt Ltd, a manufacturer of plastic products, faced severe financial difficulties starting from the COVID-19 lockdown in 2020, exacerbated by the 2021 ban on single-use plastics, which was its primary source of income. This led to a factory shutdown, loss of workforce, inability to generate revenue, and mounting expenses. The company defaulted on payments to financial and operational creditors, and was unable to pay GST. Despite directors using personal savings to repay some loans, the company's cash flow came to a standstill. Consequently, the company passed a Board Resolution on 11.08.2023 to initiate a Corporate Insolvency Resolution Process (CIRP) under Section 10 of the IBC, 2016.
Rajalakshmy Packaging Pvt Ltd is a manufacturer of plastic products.
The company faced financial difficulties since the Covid 19 lockdown in 2020.
Single-use plastic was banned vide Plastic Waste Management Amendment Rules, 2021, which was the company's primary source of income.
Due to the ban and financial difficulties, the company could not fulfill its obligations, and the factory was shut down, leading to a loss of its workforce.
The company was unable to generate revenue, and its expenses and financial difficulties continued mounting.
Rajalakshmy Packaging Pvt Ltd was unable to pay its Financial Creditors and GST tax.
The Directors of the Company used their personal savings (around Rs. 18,25,00,000/-) to repay loans taken by the Company after mortgaging their land.
…Rajalakshmy Pa…
The company began…