×
Headlines

NCLAT releases Flipkart India from Corporate Insolvency Proceedings [Read Order]

Flipkart - chartered accountant - Taxscan

The National Law Company Law Appellate Tribunal (NCLAT) releases Flipkart India from the corporate insolvency proceedings.

A three-member bench of the National Law Company Law Appellate Tribunal (NCLAT) has directed the Interim Resolution Professional (IRP), which was appointed by the Bengaluru Bench of the National Company Law Tribunal (NCLT) to hand over the records and the assets of the company back to its promoter as soon as possible.

An operation creditor of Flipkart namely Cloudwalker Streaming Technologies Pvt. Ltd. which used to supply gigantic e-commerce i.e. Flipkart with major imported LED TVs. The operational creditor has filed a petition against Flipkart in the National Company Law Tribunal (NCLT) stating that Flipkart defaulted for an amount of INR 26.95 crores.

Flipkart India contended that it received delivery of the first few batches but after that, it did not take the delivery of the LED TVs because of the reason for lack of warehouse space.

The issue raised in this case was whether the order passed by National Company Law Tribunal (NCLT) was just or not?

The three-member bench of the National Law Company Law Appellate Tribunal (NCLAT) has directed the Interim Resolution Professional (IRP), which was appointed by the Bengaluru Bench of the National Company Law Tribunal (NCLT) to hand over the records and the assets of the company back to its promoter as soon as possible.

The burden of proof lied on the operational creditor to prove the allegations on Flipkart. However, the operational creditor failed to submit to the court the documentary evidence so as to prove the default on the part Flipkart.

It was of the view that the order of the lower court saying the demand notice delivered under Section 8(1) of the Insolvency & Bankruptcy Code (IBC) was not in accordance with law as it was improper and was also incomplete.

To Read the full text of the Order CLICK HERE
Top