New Delhi: The Karnataka High Court has stayed the order of National Company Law Tribunal (NCLT) which had initiated solvency proceedings against Flipkart.
"Karnataka High Court has stayed the order of the NCLT in favour of Flipkart. This is an ongoing commercial litigation which we are challenging. At this stage, we have no further comments," Flipkart spokesperson said in an email response.
Flipkart had approached the Karnataka High Court after NCLT initiated insolvency proceedings against the Walmart owned e-commerce company for defaulting on Rs 18 crore payment to one of its suppliers.
The Bengaluru bench of NCLT had initiated Corporate Insolvency Resolution Process (CIRP) against Flipkart India under the Insolvency and Bankruptcy Code, 2016. Deepak Saruparia had been appointed as Interim Resolution Professional.
A moratorium had been placed prohibiting the pending case judgements, sale of assets and property and the Board of Directors asked to extend full cooperation to the IRP. The next date of hearing has been fixed for November 25.
The case was filed by Cloudwalker Streaming Technologies seeking CIRP against Flipkart on the ground that it has committed default on payment of Rs 26.95 crore on supply of LED TVs.
In its petition, Cloudwalker has told NCLT that Flipkart has failed to collect all the TVs ordered, failed to pay the excess charges and costs as promised and failed to honour its commitment.