30 September 2024
In a major setback for Mukesh Ambani, the financially strained quick commerce platform, Dunzo, received a lash of criticism from the Bengaluru arm of the National Company Law Tribunal (NCLT) on Friday. The critique was mainly due to Dunzo's reluctance to pay off their creditors, despite being given ample time. It's worth noting that among Dunzo's key investors are heavy hitters such as Reliance Retail and Google.
"You have taken more than three months for settlement and still nothing has happened. We are not allowing you to file any objections. First file your interlocutory application on why your objections should be considered," the Bengaluru bench of the National Company Law Tribunal (NCLT) said on Friday. It scheduled the next hearing for 4 November.
Dunzo's rising burden
The buzz is that Dunzo is under a debt burden of around Rs 4 crore payable to Betterplace Safety Solutions, along with a hefty Rs 11.4 crore owed to various promotional associates and suppliers, among which are giants like Google India, Facebook India, and Glance.
"We were under the impression that they will come forward and close the settlement... The application that they have filed is a shock to us and an indicator that the settlement talks have failed", Manjunath Hiral, counsel for Velvin Packaging, told the tribunal.
Justices K Biswal and Manoj Kumar Dubey, at the bench, were looking into the bankruptcy claims brought forward by two of Dunzo's creditors, Invoice Discounters of Dunzo Digital and Velvin Packaging. The reason behind these petitions was Dunzo's failure to meet repayment obligations. The National Company Law Tribunal (NCLT) had issued notices to this effect to Dunzo in February and March, expecting the company to reply.
"You have taken more than three months for settlement and still nothing has happened," the NCLT bench stated, refusing to allow Dunzo to file objections. The next hearing is scheduled for November 4.
Friday struggled with quietness as Dunzo failed to respond to the petitions even after granted extended time. The NCLT then pronounced in June that the chance for Dunzo to respond to the petitions had sadly lapsed.
In a major setback for Mukesh Ambani, the financially strained quick commerce platform, Dunzo, received a lash of criticism from the Bengaluru arm of the National Company Law Tribunal (NCLT) on Friday. The critique was mainly due to Dunzo's reluctance to pay off their creditors, despite being given ample time. It's worth noting that among Dunzo's key investors are heavy hitters such as Reliance Retail and Google.
"You have taken more than three months for settlement and still nothing has happened. We are not allowing you to file any objections. First file your interlocutory application on why your objections should be considered," the Bengaluru bench of the National Company Law Tribunal (NCLT) said on Friday. It scheduled the next hearing for 4 November.
Dunzo's rising burden
The buzz is that Dunzo is under a debt burden of around Rs 4 crore payable to Betterplace Safety Solutions, along with a hefty Rs 11.4 crore owed to various promotional associates and suppliers, among which are giants like Google India, Facebook India, and Glance.
"We were under the impression that they will come forward and close the settlement... The application that they have filed is a shock to us and an indicator that the settlement talks have failed", Manjunath Hiral, counsel for Velvin Packaging, told the tribunal.
Justices K Biswal and Manoj Kumar Dubey, at the bench, were looking into the bankruptcy claims brought forward by two of Dunzo's creditors, Invoice Discounters of Dunzo Digital and Velvin Packaging. The reason behind these petitions was Dunzo's failure to meet repayment obligations. The National Company Law Tribunal (NCLT) had issued notices to this effect to Dunzo in February and March, expecting the company to reply.
"You have taken more than three months for settlement and still nothing has happened," the NCLT bench stated, refusing to allow Dunzo to file objections. The next hearing is scheduled for November 4.
Friday struggled with quietness as Dunzo failed to respond to the petitions even after granted extended time. The NCLT then pronounced in June that the chance for Dunzo to respond to the petitions had sadly lapsed.
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