The National Company Law Tribunal (NCLT) at Bengaluru on Tuesday dismissed an insolvency plea filed against quick commerce company Dunzo..A coram of Judicial Member Sunil Kumar Aggarwal and Technical Member Radha Krishna Sreepada said that the plea filed by invoice discounters of Dunzo Digital was not maintainable..The judgment was delivered today after being postponed on three occasions, over the course of a month and a half. .Dunzo has been facing multiple insolvency petitions filed by its creditors due to alleged non-payment of dues. Below are the various parties that have initiated action against it:Invoice discounters of Dunzo Digital: This creditor filed an application claiming that Dunzo had only made 50% of the required payments. The exact amount owed was not disclosed. Velvin Packaging Solutions: A manufacturer of sustainable packaging solutions, Velvin Packaging filed an insolvency plea against Dunzo in November 2023. The NCLT had issued notices to Dunzo over this petition. Betterplace Safety Solutions: This operational creditor filed an insolvency application against Dunzo in February 2024 alleging unpaid dues of ₹4 crore. The dues were reportedly for services such as background verification, recruitment of delivery staff, asset management and merchandise provisions.The NCLT has been critical of Dunzo's delays in responding to these insolvency petitions. In September 2024, the Tribunal noted that Dunzo had not filed its reply to the petitions even after seeking time to do so, leading to the forfeiture of its right to reply.Dunzo's counsel had requested additional time citing ongoing settlement talks, but the Tribunal emphasised that any settlement should be initiated by the other side and required a joint affidavit within two days..Dunzo has been experiencing a liquidity crisis, leading to operational challenges such as delayed salaries, vendor payments and workforce reductions. In the financial year 2023, the company reported a loss of ₹1,801.8 crore.The company has also received legal notices from various vendors, including Google India, Facebook India, Cupshup, Koo and Glance, whom ir collectively owes approximately ₹11.4 crore..The invoice discounters of Dunzo were represented by Ayathan Associates.Dunzo was represented by Advocates Kumar Anuragh Singh and Zain Khan.
