Karnataka HC stays NCLT order against Flipkart for defaulting payment

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.