NCLT initiates insolvency proceedings against Flipkart; Bengaluru HC stays order

News Network
November 7, 2019

Bengaluru, Nov 7: The National Company Law Tribunal (NCLT) initiated insolvency proceedings against the Walmart-owned e-commerce company Flipkart for defaulting on Rs 18 crore payment to one of its suppliers. However, the NCLT order was stayed by the Karnataka High Court after Flipkart approached it. 

The Bengaluru bench of the NCLT initiated Corporate Insolvency Resolution Process (CIRP) against Flipkart India under the Insolvency and Bankruptcy Code, 2016, after a case was filed by Cloudwalker Streaming Technologies seeking CIRP against Flipkart on the grounds that it has committed default on payment of Rs 26.95 crore on supply of LED TVs.

A moratorium had been placed prohibiting the pending case judgements, sale of assets and property, and the Board of Directors asked to extend full cooperation to the insolvency resolution process. 

In its petition, Cloudwalker told NCLT that Flipkart failed to collect all the TVs ordered, failed to pay the excess charges and costs as promised and failed to honour its commitment. Cloudwalker claimed that due to Flipkart's failure in fulfilling its commitment, it was forced to unload the uncollected goods at heavily marked-down price, just so it could remain afloat.

Cloudwalker said it had sent a demand notice to which there has been no reply from Flipkart, and said that it has "consistently and persistently failed, omitted and neglected to discharge its admitted and acknowledged debt and liability." Cloudwalker, in the petition, said that it is apparent that Flipkart is commercially insolvent and is unable to pay its debts. 

Flipkart argued in NCLT that the petition is not maintainable either in law or on facts and it is liable to be rejected with exemplary costs.

Flipkart said that it has already paid Rs 85.57 crore and the allegation that it has no money to pay its liabilities or debt is "baseless, frivolous, bereft of truth and filed with malafide intentions".

"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.

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News Network
July 21,2020

Bengaluru, Jul 21: A man was arrested on Tuesday for riding his high-end bike up to a speed of almost 300 km per hour on a flyover here during ongoing lockdown, police said. After a selfie video of the man's reckless ride went viral on social media, police arrested him for putting his life and that of others at risk and seized his 1000 CC bike.

Identified by police as Muniyappa, he rode his bike on the nearly 10-km long Electronic City flyover, accelerating almost to 300 KMPH as he whizzed past some vehicles, including cars autorickshaws and trucks that were moving in both directions.

"This video made viral by the rider...going at a dangerous speed of almost 300 kmph at Ecity flyover putting his own & others life at risk..CCB traced the rider & seized bike Yamaha 1000 CC.. handed over to traffic (police)," Bengaluru Joint Commissioner of Police Sandeep Patil tweeted, tagging the video.

A case of reckless driving has been registered against him, police said. They said the incident occurred during the week-long lockdown in force in the city and outskirts till Wednesday morning to contain the spread of coronavirus, leaving most roads deserted as people remained indoors. However, it was not known when exactly he undertook the ride. A fortnight ago, three youths who were doing wheelies on the city roads met with a ghastly mishap and lost their lives.

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News Network
April 5,2020

Bengaluru, Apr 5: Chief Minister BS Yediyurappa on Saturday said the state government will double down for 100% compliance to the lockdown in the next 10 days, warning action against those found roaming the streets.

Dismissing reports of a shortage of ventilators, he said the state was bringing in reinforcements over the next few days and expressed relief that none of the Covid-19 patients of the state has required a ventilator so far.

"None of the Covid-19 patients are on ventilators; two of them require oxygen," Yediyurappa told reporters after he met ministers and MLAs of Bengaluru and apprised them of steps taken to fight the coronavirus pandemic.

The CM said the government had placed orders for 1,570 ventilators, of which 17 have been supplied and another 20 would arrive by next week. The government has also ordered 18.3 lakh N-95 masks, of which more than 4 lakh have been supplied. To ensure a steady supply of hand sanitiser, manufacturing licences have been issued to 36 pharma companies and 29 distilleries.

While the state readies the medical infrastructure, the CM urged the legislators, cutting across party lines, to ensure full compliance to the lockdown. "If people fail to cooperate with the government and respect the nationwide lockdown, there will be no option but to enforce it in a more stringent manner from Sunday," he said.

As people continue to crowd markets amid growing fears of a shortage of essentials, the CM reiterated that all measures have been put in place to get the supply chain moving. 

He also assured that food will be provided to migrant workers and the poor. "There is enough stock of foodgrains and medicine in the state. The government has set a taskforce of ministers, 17 committees under additional chief secretaries, several helplines and a war room to fight the pandemic and they are all working round the clock," he said. 

The government has also issued direction to authorities to provide rations to those who do not have BPL or APL cards. Since many people from other states have settled in Bengaluru and they don't have ration cards, we have taken this decision," Yediyurappa said.

On reports of many private hospitals being closed and refusing to treat patients, the CM said: "We have already warned private hospitals to remain open and provide treatment to patients failing which strict action will be initiated."

Kisan Nidhi, 2 months' pension by April 10
The CM said an installment of Rs 2,000 under PM Kisan Samman Nidhi Yojana and two months' pension under the various social security schemes will be credited to bank accounts of beneficiaries by April 10. 

The process of crediting subsidy to 15 lakh beneficiaries under Ujjwala Yojana is on, he said.

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News Network
July 6,2020

Riyadh, July 6: The government of Saudi Arabia has announced health protocols to prevent the spread of the new coronavirus in the 2020 Hajj season, banning gatherings and meetings between pilgrims.

Saudi Arabia decided in June to limit the number of domestic pilgrims attending the Hajj to around 1,000 to prevent the spread of the coronavirus, after barring pilgrims abroad from the rite for the first year in modern times.

Touching the Kaaba, the holiest site in Islam, will be banned during the Hajj this year, and a social distancing space of a meter and a half between each pilgrim during the rituals including mass prayers and while in the Kaaba circling area will be imposed, a statement by the Center for Disease Prevention and Control (CDC) elaborated.

Also, access to holy Hajj sites at Mina, Muzdalifah and Arafat will be limited to those with Hajj permits starting Sunday July 19 till Aug. 2 2020, and wearing masks all the time will be mandatory for both pilgrims and organisers.

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