Multiplier Brand Solutions Approaches NCLAT Against NCLT Order On Amazon Wholesale (India) Insolvency Plea

Multiplier Brand Solutions Approaches NCLAT Against NCLT Order On Amazon Wholesale (India) Insolvency Plea

The matter will be heard on 15 July

Multiplier Brand Solutions has moved the National Company Law Appellate Tribunal (NCLAT) against the order of the National Company Law Tribunal (NCLT), dismissing the insolvency plea against Amazon Wholesale (India).

The bench comprising Justice Ashok Bhushan (Chairperson) directed the listing of the appeal on 15 July for hearing.

On 05 March, the Delhi-based bench of the NCLT rejected the Corporate Insolvency Resolution Process (CIRP) plea filed by Multiplier Brand, an operational creditor, against Amazon.

The former filed the plea under Section 9 of the Insolvency & Bankruptcy Code (IBC), alleging a default of Rs.3.7 crores for eight invoices raised between March and May 2023.

Multiplier Brand had entered a novation and substitution agreement at Bengaluru between Amazon Seller Services and Amazon Wholesale (India).

However, Amazon submitted the existence of a dispute regarding the amount claimed by the operational creditor before the issuance of the demand notice.

The NCLT rejected the plea, stating that it was not expressing any opinion on entitlement, or the claim raised by the petitioner on the corporate debtor.

The tribunal held, "In view of the dispute raised by the corporate debtor regarding its liability to pay the amount demanded by the operational creditor and being bound by the judgment of the Supreme Court, we are unable to order the commencement of CIRP qua the corporate debtor.”

Aggrieved by the NCLT order, Multiplier Brand approached the NCLAT.