NCLT refuses to allow Dunzo to file response to insolvency pleas

The National Company Law Tribunal (NCLT) at Bengaluru on Monday refused to entertain applications filed by quick commerce company Dunzo to permit it to file responses to the two insolvency petitions against it..A coram of Judicial Member K Biswal and Technical Member Manoj Kumar Dubey turned down the plea as Dunzo had not filed a response despite considerable time having elapsed after the Tribunal asked it to do so.The NCLT had closed Dunzo's right to file a response in September 2024 after it failed to reach settlement with its creditors. Dunzo had not filed a response despite being given opportunities to do so. Today, the Tribunal said,"File your written arguments after oral arguments conclude. We are not going to allow you to file a response at this stage."The NCLT listed the cases filed by invoice discounters of Dunzo Digital Pvt Ltd and Velvin Packaging Solutions Pvt Ltd for final hearing on December 2. .Earlier this year, Dunzo told the NCLT that it was exploring possibilities of a settlement with the creditors who had filed insolvency pleas against it. However, in September 2024, the NCLT was informed that Dunzo had failed to reach a settlement with its creditors.Dunzo, which is India's first quick commerce service provider, is backed by Reliance Retail. The company has been marred with financial troubles amid mounting losses. The troubles came to light in July 2023 after it delayed salaries to its employees and gave up its office space. .The invoice discounters of Dunzo were represented by Advocate Ayathan Asso.Velvin Packaging Solutions was represented by law firm Murali & Co.Dunzo was represented by Advocate Kumar Anurag Singh.