CHENNAI: Chennai-based Ram Charan Company Private Limited (RCCPL), which announced a $4.14 billion investment from US-based fund TFCC International last year, is facing insolvency after it failed to pay a loan of Rs 3.5 crore to Classic Exports.
The National Company Law Tribunal’s (NCLT) Division Bench One, comprising R Sucharitha, Member (Judicial) and Sameer Kakar, Member (Technical), admitted the insolvency application filed by Classic Exports under Section 7 of the Insolvency and Bankruptcy Code (IBC) 2016.
The tribunal nominated S Vasudevan as Interim Resolution Professional (IRP) to take forward the process of corporate insolvency resolution (CIR) of RCCPL and take steps as required and file a report within 20 days. The powers of the board of directors of RCCPL stand superseded as a consequence of the initiation of CIR. Vasudevan has been directed to take charge of RCCPL’s management immediately.
Arguing on behalf of Classic Exports, K Gaurav Kumar and Alpa Jain submitted that RCCPL has failed to repay loan amount of Rs 2.55 crore, which was disbursed in six tranches from April 30, 2018 to February 27, 2019, besides outstanding interest of Rs 95.66 lakh at the rate of 2% per month as reflected in Demand Promisory Note.
While RCCPL, represented by advocate Anantha Merathia, admitted that the loan was taken, it argued that the company defaulted only from March 2020 after the advent of Covid-19 and not from November 30, 2019 as alleged by Classic Exports. As such, Section 10A of IBC — which gives exemption for a year against any insolvency resolution application starting March 25, 2020, the date of national lockdown — will apply to RCCPL.
The NCLT observed that RCCPL has not paid the interest from March 2020 and there is a default much after the Section 10A period. Till date, no interest has been paid on the principal amount. The principal amount due and payable is more than Rs 1 crore and hence the same is not hit by pecuniary jurisdiction. Debt and default is proved as there is a continuous default during and post period of Section 10A till date, said the NCLT. Ram Charan officials could not be contacted despite several attempts.
Partnership with Bolt
RCCPL had also claimed to have entered into a strategic partnership with Bolt Mobility, co-founded by eight-time Olympic gold medallist Usain Bolt. The US-based technology-focused transportation solutions company is known for its sustainability focus.
ALSO WATCH |