CHENNAI: Chennai-based firm Ram Charan Company Private Limited (RCCPL), which is facing Corporate Insolvency Resolution Proceedings (CRIPs) after it failed to pay a loan of Rs 3.5 crore to Classic Exports, has appealed against the order passed by the Chennai Bench of National Company Law Tribunal (NCLT). The company's shareholder Kaushik Palicha moved the appellate body National Company Law Appellate Tribunal (NCLAT) on Friday.
RCCPL was represented by senior advocate PH Arvindh Pandian and advocate Ananth Merathia while K Gaurav Kumar appeared for Classic Exports.
This comes after a Division Bench of R Sucharitha, member (judicial), and Sameer Kakar, member (Technical), of NCLT admitted an insolvency application filed by Classic Exports under Section 7 of the Insolvency and Bankruptcy Code (IBC) 2016 last week.
The tribunal nominated S Vasudevan as Interim Resolution Professional (IRP) to take forward the Corporate Insolvency Resolution (CIR) of RCCPL and file within 20 days a report to the bench. The powers of the board of directors of RCCPL stand superseded as a consequence of the initiation of CIR.
RCCPL submitted in its argument that the actual default committed was only from March 2020, for which no application for initiation of CIR can be filed as provided under Section 10A of the IBC code. NCLAT, however, did not grant any stay on CIR proceedings but listed the matter to July 15, 2022.
RCCPL, which announced a $4.14-billion investment from the US-based fund TFCC International last year, has also entered into a strategic partnership with Bolt Mobility, co-founded by athlete Usain Bolt.
CIR proceedings:
1. Corporate Insolvency Resolution Proceedings (CIRP) last for 180 days.
2. Usually, after admitting an insolvency petition, a 14-day window is given for filing the claims before IRP.
3. Within seven days of the receipt of the claim, it will be verified by the IRP.
4. Two days after the verification of claims, a committee of creditors is constituted.
5. The first meeting of the committee happens within seven days of its constitution.