The National Company Law Appellate Tribunal (NCLAT) has set aside the order of the NCLT to initiate insolvency proceedings against e-commerce major Flipkart.
A three-member bench of the NCLAT released Flipkart from the corporate insolvency resolution process and directed the Interim Resolution Professional (IRP) appointed by NCLT to hand over the records and assets of the company back to its promoter immediately.
Earlier, on October 24, 2019, the Bangalore Bench of the National Company Law Tribunal (NCLT) had admitted the insolvency plea filed by Cloudwalker Streaming Technologies, an operational creditor of Flipkart. “We set aside the impugned order dated October 24, 2019 passed by the adjudicating authority (NCLT) and the application filed under Section 9 by the operational creditor Cloudwalker Streaming Technologies Pvt Ltd, company petition is rejected,” said NCLAT.
It further said: “The Flipkart India Pvt Ltd (corporate debtor) is released from the corporate insolvency resolution process.”
The NCLAT order came over a petition filed by Neeraj Jain, director of Flipkart India Private Ltd.
“Interim resolution professional will handover the records and assets of the corporate debtor to the promoter immediately, who will manage the corporate debtor,” it added on its order passed on February 24.
Flipkart’s operational creditor Cloudwalker Streaming Technologies, which used to supply the e-commerce major imported LED TVs, had filed a petition before NCLT contending that Flipkart defaulted on an amount of Rs 26.95 crore.