Dunzo gets relief in one insolvency case as NCLT dismisses plea
Mumbai: The Bengaluru bench of the National Company Law Tribunal has dismissed an insolvency petition against e-commerce delivery startup Dunzo Digital Pvt. Ltd.
The insolvency court was hearing an insolvency petition filed last year by one of the company's financial creditors—called 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 inability to finalise a written order.
The decision is significant as some of Dunzo's vendors including Google India and Facebook India and other creditors including Betterplace Safety Solutions and Velvin Packaging have filed insolvency petitions against the debt-laden e-commerce platform.
According to an order dated 29 May 2024, Dunzo and its financial creditor Invoice Discounters of Dunzo Digital had sought time before the court stating that settlement talks were underway. The bench had directed that if the two parties couldn't reach a settlement, Dunzo was to file its reply to the insolvency petition within two weeks.
During a later hearing, Invoice Discounters informed NCLT that the settlement talks had failed, following which the tribunal forfeited Dunzo's right to file its reply in the matter.
The bankruptcy tribunal has pulled up the Bengaluru-based Dunzo on multiple occasions for failing to reach a settlement with its lenders.
Dunzo owes Betterplace Safety Solutions about ₹ 4 crore, and Velvin Packaging about ₹ 2.5 crore, according to reports. Dunzo also owes about ₹ 11.4 crore to advertising partners and vendors, including Google India, Facebook India and Glance.
Last year, Lightbox, a venture capital firm that held about a 11.1% stake in Dunzo gave up its board seat at the company.
In January this year, Dunzo's co-founder and former chief executive Kabeer Biswas stepped down from his position to join e-commerce marketplace Flipkart.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
21 minutes ago
- Time of India
Zoho founder Sridhar Vembu Surges Union government to simplify rules, regulations for startups
Coimbatore: Simplification of rules and regulations, including those related to GST, licensing and bank loans, is the need of the hour to propel the growth of startups, said Zoho founder Sridhar Vembu here on Saturday. He was speaking at the first demo day organized by the Coimbatore-based startup incubator Aalamaram to celebrate the 23 startups it successfully nurtured and showcase their offerings. Six startups exhibited their products at the event, which saw participation of several startup founders and investors. Speaking after the event, Sridhar Vembu said all the 23 startups should be nurtured in a big way so that billion-dollar enterprises could emerge from them. "Not every startup may be successful. It is not important what percentage of startups succeed. What matters is how many jobs are created through startups," he said. When asked about the kind of support the govt should provide, he said the Union govt had already simplified several procedures to benefit startups. However, further simplification is needed, particularly in GST compliance, licensing and access to bank loans, he said. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Đăng ký Undo "In my opinion, the govt should not fund startups, as it could lead to favouritism and corruption. The startup ecosystem should remain private. The govt's role should be limited to providing easy approvals and relaxed regulations," Sridhar Vembu said.
Time of India
22 minutes ago
- Time of India
AAI seeks 17 more acres for airport expansion in Coimbatore
Coimbatore: The Airports Authority of India (AAI) has requested the district administration for an additional 17 acres for the city airport expansion project. The district administration said the land acquisition would begin as soon as they received administrative sanction. Vidya Chandran, district revenue officer (land acquisition for airport), said the district administration had already acquired and handed over 604 acres of the 628 acres requested by the AAI for the airport expansion. Of the remaining land parcels, nine acres is entangled in litigation. The remaining 15 acres is yet to be acquired because of multiple ownership and legal heir issues, she said. "As and when we acquire and hand over the remaining land to the AAI, the people who own land in Singanallur, Irugur and Neelambur areas will face connectivity issues, as some roads will be disturbed during the land acquisition. The additional 17 acres will help address the connectivity issues," the officer said. Pointing out that Chinniyampalayam was a crucial area for the proposed runway extension, city airport director G Sambath Kumar said the land earmarked there was yet to be acquired. "The land acquisition issues are being handled by the state govt." He said the AAI had finalised an Erode-based private construction firm to set up a precast compound wall around the newly acquired land. The work is expected to commence by the first week of August, he said. The AAI had floated a tender on March 19, 2025, to construct the precast boundary wall for 16.67km for the newly acquired land at a cost of Rs29 crore, with a deadline to complete the work in 456 days.
Time of India
an hour ago
- Time of India
20% ethanol blending achieved after policy changes in 2014, says Fadnavis
1 2 Pune: Chief minister Devendra Fadnavis on Saturday lauded the efforts of Pune-based Praj Industries for its contribution to biofuel generation and said the sector suffered due to the lack of a policy during the UPA-led govt's tenure. It was only after NDA formed govt in 2014 that did India start achieving 20% ethanol blending with petrol that could help save crores of rupees in foreign exchange, he said. "The period from 2009 to 2014 was a struggle not only for Praj Industries but for the entire country. Before that, during Atal Bihari Vajpayee's govt, he formed a committee to study ethanol blending and a decision was made for 5% blending with petrol. However, the subsequent govt failed to implement the decision effectively," he said in Pune. The CM further said whenever the demand to increase the ethanol blending percentage was raised (during the UPA tenure), some people would claim that a developing country like India could not afford it by compromising food security. "The scenario changed after 2014 when the NDA govt, under Prime Minister Narendra Modi's leadership, brought changes in the policy to increase the percentage. The country has achieved 20% ethanol blending due to which India is saving crores of rupees in foreign exchange, which we would have to spend on importing fuel," Fadnavis said at an event organised to release a book written by the founder president of Praj Industries, Pramod Chaudhari.
