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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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coastaldiget.com web desk
June 18,2020

Amidst heightened border tensions between Indian and China, senior BJP leader and Madhya Pradesh Chief Minister Shivraj Singh Chouhan's two year old tweet comparing his party with Communist Party of China started going viral. 

The tweet, dated 26 June, 2016 reads: "Communist Party of China & BJP have done numerous works in social field. This way, there is tremendous similarities between the two parties." (sic)

Twitterati dug up this tweet after over 20 Indian Army personnel, including a colonel, were killed in a clash with Chinese troops in the Galwan Valley in eastern Ladakh earlier this week.

Soon after Chouhan's tweet went viral, netizens took to the micro-blogging site and slammed BJP. One user said, "Interesting comment by Hindutva ITSELF to recognise how similar they are with China. No doubt. Both believe in Dragon Throne .... and brutal absolute control." Another user said, "No wonder the BJP & China both agree that PLA never crossed into Indian territory."

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News Network
April 4,2020

Bengaluru, Apr 4: Chief Minister BS Yediyurappa on Friday asked Primary and Secondary Education Minister S Suresh Kumar to be the government's spokesperson on the Novel Coronavirus crisis management effort, a move that is being seen as keeping too many cooks from spoiling the broth.

At a high-level meeting to review measures on COVID-19 containment, Mr Yediyurappa is said to have taken exception to his Cabinet colleagues making multiple, and often contradictory statements, leading to confusion.

''The CM has directed Mr Kumar to be the only one to brief the media on COVID-19,'' a source from the Chief Minister's Office (CMO) confirmed.

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News Network
June 19,2020

Bengaluru, Jun 18: Former Karnataka Chief Minister and Congress leader Siddaramaiah has accused the BJP-led government of not passing the benefit of the low price of crude to the common man and urged Prime Minister Narendra Modi to take steps to bring down prices of petroleum products.

Hitting out at the BJP-led government, he termed it as "opportunistic" and said the price of petroleum products were being increased when people were facing difficulties due to COVID-19.

"It is very disheartening to witness and unprecedented opportunistic government which is trying to extract every pound and flesh from the common man, that too when the whole country is suffering from the COVID-19 pandemic. This is in the backdrop of the continuous price hike in the last 10 days," said the letter was written on Wednesday.

The Congress leader said that the policy decisions taken by the government "with respect to managing fuel sources are inconsistent with the prudent measures generally adopted".

"When the price of crude oil was remarkably low in March, April and May 2020, your government was very reluctant to pass on the benefits to the people by reducing the fuel prices proportionately, but, instead, your government continued to capitalise by increasing the excise duty," he said.

He said the government had also "failed" in the last six years to increase the oil storage capacity which could have been used for the country's advantage when the international crude oil price fell really low.

He said the government should roll back the excise duty and help in the reduction of fuel prices.

"The reduced burden will help the common man to have additional money in hand that will be spent on essential goods and services which will ultimately help them tide over these difficult times," he said.

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