Dunzo Insolvency Case: NCLT Questions Delivery Startup's Right To Object
Two companies, Velvin Packaging Solutions Pvt. Ltd. and Invoice Discounters, filed insolvency cases against Dunzo Digital Pvt.
Dunzo, the popular delivery startup, is facing insolvency proceedings, and the National Company Law Tribunal bench of Bangalore has questioned why it should consider the company's objections to it. According to the tribunal, Dunzo lost the right to object after it missed the deadline to respond to the proceedings.
Two companies, Velvin Packaging Solutions Pvt. Ltd. and Invoice Discounters, filed insolvency cases against Dunzo Digital Pvt. Ltd. In response, the NCLT has asked Dunzo to submit a formal request if it wants its objections to be heard. The tribunal will decide on this request at a later time, with the next hearing set for November 4.
Earlier this year, another company, Betterplace Solutions, filed an insolvency case against it in February. While there were talks of settling these disputes between the parties and several opportunities regarding the same were given by the tribunal, no final agreement has been reached yet.
In the proceedings initiated by Betterplace, it was submitted that the instant-delivery firm owed Rs 4 crore to it. It incurred substantial losses and despite receiving notices, Dunzo did not reply, it claims.
The due amount, supported by emails, was presented along with news reports detailing Dunzo's significant financial losses.
Betterplace drew parallels with the Byju's case, while Dunzo admitted to its debt and requested additional time. The company expressed concerns about the potential dissipation of Dunzo's assets due to its financial situation.
