NCLT dismisses insolvency plea against Dunzo amid failed settlement talks
The tribunal led by Justices Sunil Kumar Aggarwal and Radha Krishna Sreepada, declared the petition as "not maintainable" on Tuesday, offering temporary relief to the beleaguered firm.
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The Bengaluru bench of the National Company Law Tribunal (NCLT) has dismissed an insolvency plea filed by one of its financial creditors, Invoice Discounters, against cash-strapped delivery startup Dunzo. As per the media reports, the tribunal led by Justices Sunil Kumar Aggarwal and Radha Krishna Sreepada, declared the petition as "not maintainable" on Tuesday, offering temporary relief to the beleaguered firm.
The verdict follows failed settlement talks between Dunzo and its creditor, despite earlier attempts to resolve the matter out of court. While the NCLT had initially allowed time for a resolution, it ultimately ruled against Dunzo after the discussions collapsed and the startup failed to file its reply on time.
The ruling is critical for Dunzo, which is facing mounting financial pressure. Several creditors, including Google India, Facebook India and Betterplace Safety Solutions, have filed insolvency proceedings against the startup, collectively seeking crores in unpaid dues.
Reports peg Dunzo’s total liabilities to advertising vendors alone at over Rs 11 crore, while Betterplace and Velvin Packaging are owed Rs 4 crore and Rs 2.5 crore respectively.
This setback comes on the heels of internal shakeups as venture capital firm Lightbox vacated its board seat last year and co-founder Kabeer Biswas exited his CEO role in January to join Flipkart. While this NCLT decision grants Dunzo a temporary reprieve, its ongoing creditor battles and unresolved dues suggest the road to financial stability is far from over.
