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
March 24,2020

Bhatkal, Mar 24: Two people, who arrived from Dubai at Mangaluru International Airport on March 21, were tested positive for coronavirus.

A 40-year-old man has been tested positive for the dreaded killer disease Covid-19 while 65-year-old man, who arrived on same day from Dubai, has also been tested positive for the virus. The person reportedly took train from Mangaluru to Bhatkal after arriving at Mangaluru International Airport.

Both of them hailed from Bhatkal and are currently hospitalised and their direct contacts are being traced by the authorities.

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News Network
April 28,2020

Bengaluru, Apr 28: A local court in Karnataka on Tuesday granted bail to a CRPF commando who was arrested by state police officials for alleged assault on them during COVID-19 lockdown duty, a charge contested strongly by the paramilitary.

The jawan has been taken to the jungle warfare training school of the paramilitary force in Belagavi district, a senior official said.

Constable Sachin Savant of the 207th CoBRA battalion was granted regular bail by a court located in Chikodi taluka of the district, he said.

A team of CRPF and CoBRA officials were present in the court during the proceeding during which the state police did not oppose the bail, the official said.

The commando was arrested by police on April 23 from Examba village (Belagavi district) when he was washing his bike outside his house without wearing a mask, as required under the coronavirus prevention protocol.

An altercation and physical fight took place between the two sides, following which the trooper was taken to the local police station and arrested.

The Central Reserve Police Force (CRPF) had on Monday taken up the case with the Karnataka director general of police (DGP), calling the incident "unpleasant".

The CRPF letter said commando Savant was "manhandled, ill-treated, paraded to the police station barefooted, kept in chains and handcuffs" by police personnel and sought the intervention of state Director General of Police Praveen Sood.

The paramilitary had said that from the scrutiny of a viral video on social media of the incident "it is apparent that the conduct of the police personnel was not citizen-centric".

A police report had said the CoBRA commando "started the altercation" with the beat constable and another policeman accompanying him, and "assaulted" them.

As per the official Twitter handle of the Karnataka DGP's on Monday evening, "IGP (inspector-general of police) Belagavi has been asked to enquire into the incident involving the CRPF constable and action will be taken against guilty after receipt of the report".

The Commando Battalion for Resolute Action (CoBRA) unit of the CRPF specialises in guerrilla tactics and jungle warfare.

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News Network
February 29,2020

Kochi, Feb 29: A 36-year-old man admitted to a government hospital here died early on Saturday due to high fever, health officials said.

The test results of blood samples of the man admitted to the isolation ward of the Coronavirus patients at Kalamassery Medical College hospital had confirmed that he was not infected with the deadly virus, doctors said.

He had been suffering from pneumonia for last five days, they said.

He was a diabetic too. His end came at 12.30 am due to multi organ failure, they said.

Medical authorities said his samples have been sent for detailed examination at the NiV lab at Alappuzha and awaiting the results.

The man from Kannur district had returned from Malaysia on Friday with high fever and breathing problem.

He was referred to the hospital after he was diagnosed with serious health issues during a thermal screening for Coronavirus at the international airport here upon his arrival from Malaysia, they said.

Doctors had said the health condition of the patient was not satisfactory.

Ernakulam District Collector S Suhas had visited the patient at the hospital on Friday, officials said.

Kerala had reported India's three Coronavirus cases but all three had been discharged from the hospitals marking their recovery of all three cases of infection in India reported from Kerala.

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