Flipkart gets stay on insolvency proceedings initiated against it at NCLT

Flipkart has obtained a stay order on insolvency proceedings initiated against the e-commerce firm by the National Company Law Tribunal (NCLT) in a case involving alleged withholding of dues to a seller on its platform.

CloudWalker Streaming, a Mumbai-based supplier of LED TVs, has alleged the Flipkart did not honour its purchase agreement and had not paid dues totalling to Rs 26.95 crore. The firm moved NCLT and had petitioned that Flipkart be recommended for insolvency under Insolvency and Bankruptcy Code (IBC).

On October 24, accepting the petitioner’s argument, the Bengaluru bench of NCLT ordered initiation of insolvency proceedings. Flipkart followed up with a writ petition in the Karnataka High Court and a day later obtained a stay on the NCLT order, a Flipkart spokesperson told Business Standard.