Invoice Discounters of Dunzo Digital have filed insolvency proceedings against the digital e-commerce platform, Dunzo alleging that the company has only partially repaid its dues as per a report by Mint.
Dunzo is in the midst of a cash crunch which has forced the e-commerce platform over the years to change in layoffs, change in business models, delay in salaries and vendor payments
Invoice Discounters of Dunzo Digital have filed insolvency proceedings against the digital e-commerce platform, Dunzo alleging that the company has only partially repaid its dues as per a report by Mint.
There is no clarity on the amount that Dunzo owes to Invoice Discounters.
An NCLT order on 29 May stated that both parties had sought more times as the settlement talks were underway. But the bench stated that in case there was no settlement, Dunzo would have to reply to the petition in two weeks.
Dunzo’s counsel reportedly had told the tribunal that the parties involved are genuinely exploring settlement talks and are close to finalising the settlements. The counsel further stated that if the “settlement talks fail, we will go ahead and file a reply in the matter.”
Invoice Discounters provide services such as asset management, hiring delivery staff, background checks, and merchandise, as outlined in a platform subscription agreement and master service agreement to Dunzo.
However contrary to these claims, the creditor's counsel stated that the "company has paid only half of the money it owes.”
The bench led by Justices K Biswal and Manoj Kumar Dubey reportedly stated, “We are not bothered… [for] any settlement proposal henceforth, both the parties need to file a joint affidavit within two days, otherwise we will reject [it]. This is the position.”
It said it would hear about the matter next on 6 August.
Dunzo is in the midst of a cash crunch which has forced the e-commerce platform over the years with layoffs, change in business models, delay in salaries and vendor payments