Dunzo will get aid in a single insolvency case as NCLT dismisses plea | Company Business News

Mumbai: The Bengaluru bench of the National Company Law Tribunal has dismissed an insolvency petition in opposition to e-commerce supply startup Dunzo Digital Pvt. Ltd.

The insolvency courtroom was listening to an insolvency petition filed final 12 months by one of many firm’s monetary collectors—known as Invoice Discounters of Dunzo Digital Pvt Ltd—for non-payment of dues. 

On Tuesday, an NCLT bench led by Justices Sunil Kumar Aggarwal and Radha Krishna Sreepada held that the insolvency petition was not maintainable and dismissed it. The bench had earlier deferred its verdict on the matter citing its incapability to finalise a written order.

The resolution is critical as a few of Dunzo’s distributors together with Google India and Facebook India and different collectors together with Betterplace Safety Solutions and Velvin Packaging have filed insolvency petitions in opposition to the debt-laden e-commerce platform.

According to an order dated 29 May 2024, Dunzo and its monetary creditor Invoice Discounters of Dunzo Digital had sought time earlier than the courtroom stating that settlement talks had been underway. The bench had directed that if the 2 events couldn’t attain a settlement, Dunzo was to file its reply to the insolvency petition inside two weeks.

During a later listening to, Invoice Discounters knowledgeable NCLT that the settlement talks had failed, following which the tribunal forfeited Dunzo’s proper to file its reply within the matter.

Also learn | Dunzo could have been a Zepto. So why did it fail?

Dunzo’s dues

The chapter tribunal has pulled up the Bengaluru-based Dunzo on a number of events for failing to succeed in a settlement with its lenders.

Dunzo owes Betterplace Safety Solutions about ₹4 crore, and Velvin Packaging about ₹2.5 crore, in accordance with studies. Dunzo additionally owes about ₹11.4 crore to promoting companions and distributors, together with Google India, Facebook India and Glance.

Last 12 months, Lightbox, a enterprise capital agency that held a couple of 11.1% stake in Dunzo gave up its board seat on the firm.

In January this 12 months, Dunzo’s co-founder and former chief government Kabeer Biswas stepped down from his place to affix e-commerce market Flipkart.