Blade Making Firm Supermax Personal Care Files For Bankruptcy

The National Company Law Tribunal (NCLT) has admitted Supermax Personal Care, a company that specialises in men's grooming and personal care, under the insolvency resolution process.

The Mumbai bench of the National Company Law Tribunal (NCLT) accepted a petition filed by Nimbus Packaging, an operational creditor of Supermax Personal Care.

In response to the application, Supermax Personal Care admitted its financial struggle and liability to the debt. A division bench, consisting of judicial member Kishore Vemulapalli and technical member Anu Jagmohan Singh, presided over the case on 11 January 2024. The bench declared that the case was suitable for admission under the Insolvency and Bankruptcy Code, as the debt and default had been established and no prior dispute had been raised by the company.

As the operational creditor, Ashish Pyasi, founder of Andri Legal law firm, argued that Nimbus Packaging had supplied cartons and other packaging material to the company. When the creditor experienced a payment delay, it asked Supermax Personal Care to provide a letter of credit from the bank. However, the debtor company did not provide LC against the invoices that were due. Supermax Personal Care kept promising to pay the amount in a few months but never paid.

The operational creditor had approached the NCLT in September 2023 following Supermax Personal Care’s default on its dues of 1.97 crore.