No corporate insolvency proceedings against us, says Flipkart
The Bengaluru bench of the National Company Law Tribunal (NCLT) has directed insolvency proceedings against India’s leading ecommerce marketplace Flipkart for alleged defaulting on a payment.
However, the company categorically stated it is not undergoing corporate insolvency resolution process and is continuing its operations on an ongoing concern basis under its present management.
This direction was posted on the NCLT website by the single judge bench of Rajeswara Rao Vittanala, based on a petition by a seller on Flipkart platform - CloudWalker Streaming Technologies. The petition alleged that Flipkart had defaulted on payment to the tune of Rs 26.95 crore to the seller.
A statement issued by Flipkart said, “The Hon’ble NCLT had orally dictated its orders on October 24, 2019, however, the said orders was only made available on November 5, 2019.”
Flipkart immediately proceeded to file a writing petition before the Hon’ble High Court seeking relief against the order dated October 24, 2019, of the NCLT.
“The Hon’ble High Court considered this matter in exercise of its extraordinary writ jurisdiction and vide its order dated October 25, 2019, stayed the order dated October 24, 2019,” Flipkart said.
Flipkart said the writ petition was again taken up for hearing by the High Court on October 31, 2019.
“Again on October 31, 2019, the Hon’ble High Court was pleased to direct continuation of the stay on the order dated October 24, 2019, passed by the NCLT till the next date of hearing. The next date of hearing in the matter at present has not been fixed,” it said.
The petitioner CloudWalker Streaming Technologies is one of the supplier of LED TVs to Flipkart. In its petition under the Insolvency and Bankruptcy Code (IBC), the supplier had alleged that Flipkart had paid only Rs 85 crore as against the admitted dues of Rs 103 crore.
The petitioner further alleged that Flipkart failed to collect all LED TVs after placing an order, citing a shortage of warehouse space.
(Edited by Saheli Sen Gupta)