Flipkart faces fresh insolvency petition as NCLT seeks response over ₹1.7 crore dues

MUMBAI: A special bench of the Bengaluru National Company Law Tribunal (NCLT) has issued a notice to Flipkart, seeking its response to an insolvency appeal filed by Applabs Media Pvt Ltd against the e-commerce company over alleged unpaid dues of almost ₹1.7 crore.

A two-judge bench of Justice Mahendra Khandelwal and Justice Radhakrishna Sreepada heard the petitioner who filed his appeal under Section 9 of the Insolvency and Bankruptcy Code.

“Let notice be issued to the corporate debtor for filing its response and appearance. Notice be issued by all means and proof of service be filed,” the tribunal said. The next hearing is scheduled for 14 July.

Applabs Media, an AI-driven ad-tech company, alleged that Flipkart did not pay it about ₹1.7 crore under a marketing agreement dated 5 December 2019. The company provided cost-per-transaction advertising campaigns on Flipkart’s mobile application and claimed it raised three invoices under the agreement, which were payable within 45 days.

Counsel for Applabs said Flipkart acknowledged the payment obligations in an email on 15 May 2023.

“… we got confirmation from the finance team that payment will be received as soon as possible,” the counsel said, referring to Flipkart’s email response.

The petition is a new plea filed under Section 9 of the IBC, which empowers operational creditors such as vendors, suppliers and employees to initiate the corporate insolvency resolution process against a defaulting corporate debtor before the NCLT.

Flipkart did not respond to Mint’s queries seeking comment on the matter.

This is the second such case filed against Flipkart. In March, the Bengaluru bench of the NCLT issued a notice to Flipkart under Section 9 of the IBC on a petition filed by Netambit Value First Services Pvt Ltd, which alleged a default of ₹4.37 crore linked to affiliate marketing services provided to the company. The matter is still being heard.

Yash Tiwari is a Mumbai-based journalist who reports on corporate and regulatory developments, with a focus on court-driven policy shifts and the intersection of law and public policy. He has been in the profession for two years. Before joining Mint, he worked at NDTV Profit as an assistant producer on the TV desk while also reporting, gaining experience across television and print journalism and combining reporting with production expertise.<br><br> Born in Kolkata, a city he remains deeply connected to, Yash has a keen interest in the technicalities of Indian law and aims to decode complex legal developments in a clear and accessible manner for readers. He is a graduate of the Asian College of Journalism, Chennai, where he completed his postgraduate diploma in journalism.<br><br> He closely follows politics and government policies, and has covered several state elections as a freelance journalist. His work is driven by the idea of making law less intimidating and more understandable for the general public.<br><br> When not at work, Yash can be found playing cricket, revisiting classic matches, or engaging in conversations about the evolving landscape of law and policy in India.

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