Betterplace Safety Solutions has taken legal action against Dunzo Digital over unpaid dues, initiating proceedings at the National Company Law Tribunal (NCLT) in Bengaluru. Dunzo, a local quick-grocery delivery provider, has reportedly accumulated outstanding vendor debts totaling approximately Rs 11.4 crore, according to recent reports. The legal action follows Dunzo’s receipt of notices from multiple companies, including Google India, Nilenso, Clover Ventures, Facebook India Online Services Private Limited, Cupshup, Koo, and Glance, demanding payment of overdue amounts.
Betterplace Safety Solutions has taken legal action against Dunzo Digital at the National Company Law Tribunal (NCLT) in Bengaluru over pending dues. Dunzo, a prominent local quick-grocery delivery provider, has reportedly received legal notices from at least seven companies since March this year, with total outstanding vendor debts amounting to approximately Rs. 11.4 crore, nearly double the earlier estimates.
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According to the reports, among the companies issuing legal notices to Dunzo are Google India, Nilenso, Clover Ventures, Facebook India Online Services Private Limited, Cupshup, Koo, and Glance. Notably, agritech startup Clover Ventures has demanded over Rs 2 crore in dues, while advertising firm Cupshup has sought payment of Rs 1 crore from Dunzo.
The matter has been brought before a judicial member, Justice T Krishnavalli, and a Technical member Manoj Kumar Dubey at the NCLT, and the hearing is scheduled for March 4.
The plea for the initiation of the corporate insolvency resolution process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code (IBC) was filed on November 21, 2023, and subsequently listed on January 24.
Section 9 of the Insolvency and Bankruptcy Code (IBC) allows operational creditors to initiate the corporate insolvency resolution process (CIRP) against a corporate debtor. This section enables operational creditors, such as suppliers of goods and services, to file an application before the National Company Law Tribunal (NCLT) if they have not received payment from the corporate debtor. The application must demonstrate the existence of an unpaid operational debt and the failure of the corporate debtor to make payment within the stipulated time frame. Once the NCLT admits the application, it triggers the commencement of the insolvency resolution process against the corporate debtor.
Despite multiple extensions sought by Dunzo, it allegedly failed to clear the outstanding dues, prompting Betterplace to file the petition. Khurana & Khurana Advocates and IP Attorneys represent Betterplace in this legal matter.
The outstanding dues relate to various services provided by Betterplace, including background verification services, sourcing of delivery personnel, asset management services, and merchandise, as per agreements outlined in a master service agreement and platform subscription services under a platform subscription agreement.
CASE TITLE: Betterplace Safety Solutions Private Limited v Dunzo Digital Private Limited
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