Quasar India CIRP shifts management to Raghunath Bhandari

Quasar India Limited entered the corporate insolvency resolution process, or CIRP, after admission of a Section 9 petition supported by Rs 5.395 crore of unpaid principal, with Raghunath Bhandari appointed interim resolution professional, or IRP, to perform statutory functions and manage the company’s day-to-day affairs under the Insolvency and Bankruptcy Code, 2016.

What did the tribunal admit against Quasar India?

The tribunal admitted CP (IB) No. 697/ND/2025 under Section 9 of the Insolvency and Bankruptcy Code, 2016, initiating CIRP against Quasar India on an application by Bikit Private Limited, the operational creditor. The order said the memorandum of understanding, purchase order, payment records and demands supported the underlying transaction and alleged default.

The admission rests on Rs 5.395 crore of unpaid principal, which the tribunal found independently established and above the statutory threshold. It said Quasar India had not shown repayment of that principal, while the precise contractual interest claim under Clause 5 of the memorandum of understanding will be verified under the contract and applicable insolvency regulations.

The tribunal distinguished the debt supporting admission from the initial funding required for the process. Bikit must deposit Rs 2 lakh with the IRP within one week of receiving the order under Regulation 6 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016; that amount is subject to accounting and adjustment by the committee of creditors and is to be repaid to Bikit.

Why was the Section 9 petition against Quasar India admitted?

The Section 9 petition was admitted because the tribunal found no genuine pre-existing dispute and no payment within the statutory period. Quasar India had contended that the operational creditor’s failure to pay a further tranche had prevented supply, but the tribunal said the company’s communications instead acknowledged supply failure and a refund obligation.

The tribunal also rejected the contention that the petition had to fail because a National e-Governance Services Ltd. information-utility record was filed later. It said Section 9(3)(e) permits other evidence of non-payment and relied on the memorandum of understanding, purchase order, advance-transfer proof, written demands, Quasar India correspondence and the operational creditor’s ledger.

The order separates the Section 9 admission test from subsequent claim verification. The Rs 5.395 crore principal was sufficient for admission, while the final amount to be admitted, including interest, remains subject to verification under the memorandum of understanding and applicable regulations.

Who manages Quasar India during CIRP?

Raghunath Bhandari manages Quasar India’s day-to-day affairs as IRP, subject to the functions contemplated under Sections 15, 17, 18, 19, 20 and 21 of the Insolvency and Bankruptcy Code. His registration number is IBBI/IPA-002/IP-N01023/2020-2021/13276, and he must submit Form 2 consent, a registration certificate and a valid authorisation for assignment within five days of receipt of the order.

The order requires Quasar India personnel, promoters and others associated with its management to provide the IRP assistance and cooperation required under Section 19. It also assigns the IRP the Section 20 duty to protect and preserve the value of the company’s property while performing his functions under the Code, rules and regulations.

The order does not separately catalogue powers previously exercised by Quasar India directors. It does, however, appoint the IRP to carry out the statutory CIRP functions, places management-associated persons under a duty to cooperate, and directs the IRP to manage daily affairs during the process.

If the IRP identifies a violation by former management or a tainted or illegal transaction involving former directors or any other person, the order permits him to apply to the tribunal for appropriate directions. That authority does not amount to a finding that a violation or transaction has occurred.

What does the moratorium stop at Quasar India?

The Section 14 moratorium stops the institution or continuation of suits and proceedings against Quasar India, including execution of judgments, decrees and orders before courts, tribunals, arbitration panels and other authorities. The restriction applies following admission of CP (IB) No. 697/ND/2025.

The moratorium also prevents Quasar India from transferring, encumbering, alienating or disposing of assets, legal rights or beneficial interests. Creditors are further barred from foreclosing, recovering or enforcing security interests over company property, including through action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

Owners and lessors cannot recover property occupied by or in Quasar India’s possession during the Section 14 period. Licences, permits, registrations, quotas, concessions and clearances cannot be suspended or terminated solely because of insolvency, provided current dues for their use or continuation are paid during the moratorium.

The order identifies exceptions to these restrictions. The moratorium does not apply to transactions notified by the Central Government or to sureties under Section 14(3)(b), while specified essential goods or services for the corporate debtor are not to be terminated, suspended or interrupted during the moratorium.

What are the next steps in Quasar India’s CIRP?

The immediate disclosed deadlines are five days for Bhandari’s Form 2 consent and supporting documents, and one week for Bikit’s Rs 2 lakh IRP-expense deposit. The order says Bikit must also provide the complete paper book to the IRP, supporting the IRP’s statutory work under Sections 15 through 21.

The Registry must communicate the order to Bikit, Quasar India and Bhandari. Copies must also be sent to the Insolvency and Bankruptcy Board of India for its records and to the Registrar of Companies, or ROC, for updating master data; the ROC has been directed to provide a compliance report to the Registrar of the National Company Law Tribunal.

The committee of creditors is relevant to the initial Rs 2 lakh deposit because the order provides for its adjustment after the IRP accounts for it. Beyond that administrative requirement, the supplied order does not disclose a resolution plan, creditor-claim total, asset valuation, or a timetable for later CIRP milestones.

Conclusion

Quasar India’s CIRP admission moves its affairs into the statutory insolvency framework led by Bhandari as IRP. The tribunal found Rs 5.395 crore of unpaid principal sufficient for Section 9 admission, rejected the asserted pre-existing dispute, and imposed Section 14 restrictions on litigation, asset dealings and security enforcement.

The next disclosed matters to watch are Bhandari’s five-day filing of Form 2 and credentials, Bikit’s Rs 2 lakh deposit within one week, and the required ROC compliance report. The final amount of Quasar India’s admitted claim, including contractual interest, remains unresolved and subject to verification under the memorandum of understanding and applicable regulations.