The National Company Law Appellate Tribunal (NCLAT) on Monday set aside the insolvency proceedings against e-commerce major Flipkart.
CloudWalker, an operating creditor, which imported and retailed LED TVs on Flipkart’s platform, dragged the company to the NCLT last year over alleged default of Rs 26.95 crore towards procured imported televisions as per the supply agreement. On October 24, the tribunal admitted the its application for initiation of corporate insolvency resolution process (CIRP) against Flipkart, which moved the NCLAT.
The three judge NCLAT bench said that the the operational creditor failed to submit any documents to prove in existence of the operational debt and the amount in default.
“The operational creditor also failed to submit the copy of invoices and copies of all the documents referred in the application to be submitted in Form 5, under Section 9 of the Code (IBC). The operational creditor has failed to submit the relevant documents under which the debt has become due,” said the judgement.
Further, the NCLAT noted that CloudWalker Streaming Technologies only filed the copy of the ”Supply Agreement”, and the projections email, “which by themselves can by no stretch of the imagination constitute proof of debt”.