# In the matter of Rasna Private Limited

> NCLT judgment dated 2023-09-01. Citation: TCN-2023-NCLT-01795. This case involves an application filed by Bharat Road Carrier Pvt Ltd (Operational Creditor)…

- **Court:** NCLT
- **Order date:** 1 Sept 2023
- **Citation:** TCN-2023-NCLT-01795
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rasna-private-limited-b7773fc1

## Summary

### Background

This case involves an application filed by Bharat Road Carrier Pvt Ltd (Operational Creditor) against Rasna Pvt Ltd (Corporate Debtor) under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed an operational debt of Rs. 71,27,442/- plus interest. The Corporate Debtor admitted to availing transportation services but claimed pre-existing disputes. The Operational Creditor issued a demand notice on 20.08.2018. The Corporate Debtor had also instituted a civil suit for damages before the Commercial Court at Ahmedabad, which was referred to mediation but failed due to the Operational Creditor's non-appearance.

## Facts

Bharat Road Carrier Pvt Ltd (Operational Creditor) filed an application under Section 9 of the IBC, 2016, against Rasna Pvt Ltd (Corporate Debtor) to initiate CIRP. The Operational Creditor claimed an operational debt of Rs. 71,27,442/- plus interest, arising from transportation services provided between April 2017 and August 2018. A demand notice was issued on 20.08.2018, and the Corporate Debtor acknowledged its receipt. The Corporate Debtor admitted to availing transportation services but claimed pre-existing disputes. The Corporate Debtor had instituted a civil suit for damages amounting to Rs.1.25 Crore before the Commercial Court at Ahmedabad, which was referred to mediation but failed. Email correspondence dated 10.08.2018 indicated an admission of debt by the

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has …

**Ratio:** Section 9(5)(i) of the IBC, 2016, requires the Adjudicating Authority to ascertain the

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**Reasoning:** The Tribunal found that the Applicant had demonstrated a default exceeding Rs. 1 lakh

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**Interpretation:** The provision requires the Adjudicating Authority to be satisfied that a debt

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**Application:** The Tribunal applied this ratio by examining the invoices, demand notice, and

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## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** Bharat Road…
- **Respondents:** Rasna Pv…
- **Advocates:** Sanyam…; Aishwarya…

## Timeline

- **2018-07-18 — Last Invoic…**: The last invoice date…
- **2018-08-18 — Due Date for Last…**: The due date for the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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