NCLT Grants Dunzo Two-Week Deadline to Resolve Dues with Betterplace Safety Solutions

Reliance-backed Dunzo Digital Pvt Ltd has been given a two-week deadline by the Bengaluru bench of the National Company Law Tribunal (NCLT) to settle its outstanding dues with technology platform Betterplace Safety Solutions Pvt Ltd.

The extension aims to prevent additional insolvency proceedings against Dunzo, which has been facing financial challenges. Betterplace Safety Solutions, an operational creditor of Dunzo, had filed for insolvency proceedings under Section 9 of the Insolvency and Bankruptcy Code (IBC) in February. The specific amount owed by Dunzo to Betterplace was not disclosed.

During the hearing, Dunzo requested two weeks to settle with its lenders and investors. The matter is scheduled to be revisited on June 19 by Justices K Biswal and Manoj Kumar Dubey.

However, counsel representing Betterplace Safety Solutions expressed skepticism about Dunzo’s commitment to settling, noting that discussions had been ongoing for almost a year and expressing a lack of confidence in the process.

Dunzo’s debt to Betterplace Safety Solutions includes payments for various services such as asset management, recruitment of delivery staff, background checks, and merchandise, as outlined in their platform subscription agreement and master service agreement.

In addition to Betterplace, another operational creditor of Dunzo, Velvin Group, has filed an insolvency case against the company, which was admitted by the Bengaluru bench of NCLT.

The challenges faced by Dunzo have been compounded by the resignation of a key investor, LightBox, from its board. LightBox, with the second-highest stake in the company after Reliance, relinquished its board seat, adding to the turbulence within Dunzo. Co-founders Dalvir Suri and Mukund Jha reportedly left the company and stepped down from their board positions last year.

The developments underscore the financial strain facing Dunzo and the efforts underway to address its debt obligations amid ongoing turbulence in its leadership and investor landscape.

Disclaimer: This information is covered based on the latest research and development available. However, it may not fully reflect all current aspects of the subject matter.

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