NCLT Dismisses Insolvency Plea Against Dunzo Filed by Invoice Discounters
- PRABAHAT KUMAR BILTORIA
- 28 May 2025
The National Company Law Tribunal (NCLT) has dismissed an insolvency plea against Dunzo filed by invoice discounters. Learn more about the legal proceedings, creditor claims, and Dunzo’s ongoing financial troubles.
NCLT Dismisses Insolvency Petition Filed by Invoice Discounters Against Dunzo
On 27 May 2025, the National Company Law Tribunal (NCLT) in Bengaluru rejected an insolvency petition filed by invoice discounters against Dunzo, a prominent player in the quick commerce industry.
Tribunal Finds Petition Against Dunzo Not Maintainable
The plea was filed by invoice discounters associated with Dunzo Digital, claiming partial non-payment of dues. However, the bench—comprising Judicial Member Sunil Kumar Aggarwal and Technical Member Radha Krishna Sreepada—ruled that the petition was not maintainable.
This verdict was delivered after multiple delays spanning over six weeks.
Dunzo Faces Multiple Insolvency Petitions from Creditors
Despite this dismissal, Dunzo is still battling multiple insolvency applications filed by various creditors. Here are the key players involved:
- Invoice Discounters: Filed an application alleging that Dunzo had fulfilled only 50% of its payment obligations. The specific amount in question remains undisclosed.
- Velvin Packaging Solutions: This eco-friendly packaging company filed an insolvency plea in November 2023. The NCLT has issued notices to Dunzo in response.
- Betterplace Safety Solutions: An operational creditor that initiated proceedings in February 2024, citing unpaid dues of ₹4 crore. These were for services including background checks, asset management, recruitment of delivery personnel, and merchandise supply.
NCLT Questions Dunzo’s Delayed Responses
The Tribunal has expressed concern over Dunzo’s delays in responding to these legal proceedings. In September 2024, the NCLT noted that Dunzo failed to submit its replies despite being granted extra time—resulting in forfeiture of its right to respond.
Although Dunzo’s legal counsel requested further time due to ongoing settlement talks, the NCLT emphasized that any settlement should be initiated by the creditor and required a joint affidavit within 48 hours.
Dunzo’s Ongoing Financial Crisis and Vendor Dues
Dunzo is currently navigating a significant liquidity crunch, which has led to delayed salary payments, unpaid vendor dues, and workforce reductions. In FY 2023, Dunzo reported losses amounting to ₹1,801.8 crore.
Major Vendors Serving Legal Notices to Dunzo
Several prominent vendors have served legal notices to Dunzo, demanding repayment of dues totaling ₹11.4 crore. These vendors include:
Conclusion
Although the NCLT rejected the invoice discounters’ petition, Dunzo remains under pressure from multiple legal and financial fronts. The company’s struggle to resolve its liabilities and stabilize operations continues to attract regulatory attention.
