NCLAT Upholds NCLT's Rejection of Insolvency Plea Against Amazon India

The NCLAT has rejected a petition by Multiplier Brand Solutions to initiate insolvency proceedings against Amazon Wholesale (India). The tribunal supported the NCLT's decision, citing pre-existing disputes over Rs 3.7 crore in invoices. The NCLAT concurred there was no error in dismissing the insolvency plea.

The National Company Law Appellate Tribunal (NCLAT) has dismissed a plea initiated to begin insolvency proceedings against Amazon Wholesale (India). This decision upholds the earlier ruling by the National Company Law Tribunal (NCLT), which had denied the insolvency request submitted by Multiplier Brand Solutions.

Multiplier Brand Solutions claimed a default of Rs 3.7 crore for a series of invoices issued between March and May 2023. However, the NCLAT ruled that the claim for payment under Section 9 of the Insolvency & Bankruptcy Code was disputed before any demand notice was issued.

The NCLAT concluded that the NCLT didn't err in refusing to initiate the Corporate Insolvency Resolution Process (CIRP) due to pre-existing disputes reflected in prior communications between the involved parties. The case was initially challenged by Multiplier Brand Solutions at the NCLT, and subsequently before NCLAT after the NCLT's dismissal.

(With inputs from agencies.)