E-commerce major Flipkart on Wednesday said the Karnataka High Court has stayed insolvency proceedings ordered by the National Company Law Tribunal (NCLT) against the company.
CloudWalker Streaming Technologies had filed a case against Flipkart under Section 9 of the IBC before the National Company Law Tribunal, Bengaluru over non-payment of dues.
In a statement, Flipkart said it had proceeded to file a writ petition before the Karnataka High Court seeking relief against the NCLT order dated October 24, 2019.
"The Hon'ble High Court considered this matter in exercise of its extraordinary writ jurisdiction and vide its order dated 25 October 2019 stayed the order dated 24 October 2019," it added.
The writ petition was again taken up for hearing by the Karnataka HC on October 31, where it directed continuation of the stay till the next date of hearing, it said.
The next date of hearing in the matter at present has not been fixed.
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"In view of the above, it is clarified that as on date Flipkart is not undergoing corporate insolvency resolution process and is continuing its operations on a going concern basis under its present management," the statement said.
While Flipkart did not provide details of the case, reports suggest that CloudWalker Streaming Technologies imported and supplied LED televisions to Flipkart India.
According to the reports, CloudWalker alleged that Flipkart India had failed to collect a majority portion of the stock ordered by it, leading to a default of about Rs 26 crore. This could not be verified independently.