NCLT warns Reliance-backed Dunzo Of moratorium over unpaid dues

The National Company Law Tribunal (NCLT) has issued a stark warning to grocery delivery platform Dunzo regarding a complaint filed by Betterplace Safety Solutions. 

The complaint alleges that Dunzo has failed to clear dues amounting to Rs 4 crore. The NCLT's warning came during a hearing on Monday, where it was made clear that Dunzo could face a moratorium if it does not promptly address the issue. The tribunal has given Dunzo a week to respond, during which no third-party interests in the company's assets can be created.

Dunzo's financial struggles

The case against Dunzo highlights the company's significant financial struggles, with evidence presented in the form of emails and news reports. Dunzo's financial predicament has been compared to the high-profile Byju's case, indicating the severity of the situation.

Despite acknowledging the debt owed to Betterplace, Dunzo has requested additional time to settle the dues, citing concerns over the potential dissipation of its assets.

The request for a status quo

Betterplace Safety Solutions has requested the NCLT to maintain a status quo on Dunzo's assets to prevent any third-party interests. This request aims to preserve the current state of affairs until a resolution is reached.

The NCLT has expressed concern over Dunzo's failure to file a reply and questioned why there should be any objections to maintaining a status quo, emphasizing the need to protect Dunzo's assets during this critical period. The next hearing is scheduled for April 1, 2024.