The National Company Law Tribunal (NCLT) has admitted men’s grooming and personal care firm Supermax Personal Care under the insolvency resolution process and appointed Kshitiz Gupta as the interim resolution professional of the company. Mumbai-based Supermax Personal Care is a part of Super-Max Group. It is largely into products such as razors, blades and shaving creams, which it supplies to the market in India and other affiliates of Supermax Group abroad.
The Mumbai bench of NCLT had admitted an application filed by the company’s operational creditor Nimbus Packaging.
“The corporate debtor (Supermax Personal Care) in its reply has admitted its liability by stating that it is facing severe financial difficulties,” a division bench presided by judicial member Kishore Vemulapalli and technical member Anu Jagmohan Singh said in its order of January 11. “Since the debt and default exist and no pre-existing dispute has been brought out by the company, it is a fit case for admission under the insolvency and bankruptcy code.”
An email query to Supermax Personal Care remained unanswered till press time.
Appearing for the operational creditor, Ashish Pyasi, founder of law firm Andri Legal, had argued that Nimbus Packaging supplied cartons and other packaging material to the company.
“When the creditor experienced a delay in payment, it asked Supermax Personal Care to give a letter of credit from the bank,” argued Pyasi. “However, the debtor company did not give LC against the invoices which were due. Supermax Personal Care kept on promising that it will pay the amount in a few months, but never paid.”
The operational creditor had approached the tribunal in September last year after Supermax Personal Care defaulted on its dues of ₹1.97 crore.
Source: Economic Times