The National Company Law Tribunal (NCLT) Bengaluru bench has strongly criticized Dunzo Digital Pvt Ltd for its prolonged delay in settling outstanding debts with creditors, despite being granted multiple extensions. During a recent hearing, Justices K Biswal and Manoj Kumar Dubey expressed frustration over the quick commerce company’s failure to act, remarking, “You have taken more than three months for settlement and still nothing has happened.”
The tribunal was addressing insolvency petitions from creditors, Invoice Discounters of Dunzo Digital and Velvin Packaging, following Dunzo’s inability to repay its dues. Despite receiving notices in February and March and being given time to respond, Dunzo failed to file replies, prompting the NCLT in June to declare that the company had forfeited its right to respond. The company now faces a final hearing on November 4, where it must submit an interlocutory application justifying its objections.
Dunzo’s financial struggles have been well-documented. The company owes ₹4 crore to Betterplace Safety Solutions and ₹11.4 crore to advertising partners, including Google India, Facebook India, and Glance. It has also laid off 150 employees, leaving only 50 staff members in core roles, while attempts to raise $22-25 million in fresh funding have stalled amid concerns about its growth trajectory.
Key Highlights:
- NCLT reprimanded Dunzo for failing to settle debts despite receiving multiple extensions, leading to a final hearing scheduled for November 4.
- Dunzo owes significant sums to creditors, including ₹4 crore to Betterplace and ₹11.4 crore to advertising partners like Google and Facebook.
- The company has faced severe financial issues, including layoffs and challenges in securing a crucial funding round of $22-25 million.