The National Law Company Law Appellate Tribunal (NCLAT) releases Flipkart India from the corporate insolvency proceedings.
The issue raised in this case was whether the order passed by National Company Law Tribunal (NCLT) was just or not?
Facts of the case:
An operation creditor of Flipkart namely Cloudwalker Streaming Technologies Pvt. Ltd. which used to supply gigantic e-commerce i.e. Flipkart with major imported LED TVs. The operational creditor has filed a petition against Flipkart in the National Company Law Tribunal (NCLT) stating that Flipkart defaulted for an amount of INR 26.95 crores.
Flipkart India contended that it received delivery of the first few batches but after that, it did not take the delivery of the LED TVs because of the reason for lack of warehouse space.
Interpretation and Conclusion of law:
The three-member bench of the National Law Company Law Appellate Tribunal (NCLAT) has directed the Interim Resolution Professional (IRP), which was appointed by the Bengaluru Bench of the National Company Law Tribunal (NCLT) to hand over the records and the assets of the company back to its promoter as soon as possible.
The burden of proof lied on the operational creditor to prove the allegations on Flipkart. However, the operational creditor failed to submit to the court the documentary evidence so as to prove the default on the part Flipkart.
It was of the view that the order of the lower court saying the demand notice delivered under Section 8(1) of the Insolvency & Bankruptcy Code (IBC) was not in accordance with law as it was improper and was also incomplete.