Malabar Gold Initiates Insolvency Proceedings Against Flipkart in India

Malabar Gold Initiates Insolvency Proceedings Against Flipkart in India

Malabar Gold Ltd. has initiated insolvency proceedings against Flipkart Internet Pvt. Ltd., a subsidiary of Walmart, before the National Company Law Tribunal (NCLT) in Bengaluru. The case was originally filed in February 2024 and formally registered in April 2024. The first hearing took place in May 2024.

During the hearing, the NCLT bench in Bengaluru issued a notice to Flipkart Internet, the respondent in the case. The bench directed the registry to prepare the notice and permitted counsel for Malabar Gold to collect and serve the notice on Flipkart, including its managing director, via speed post and email. An affidavit of service along with tracking reports was required to be filed with the registry within one week.

The bench granted Flipkart two weeks to file objections and the petitioner, Malabar Gold, one week thereafter to file a rejoinder, if necessary, after serving a copy on the respondent. The petitioner was also directed to file a memo detailing due dates falling within the Section 10A period and after its removal, regarding the satisfaction of the threshold limit.

On July 3, 2024, Flipkart's counsel requested additional time to submit objections to Malabar Gold's case. The next hearing is scheduled for August 19, 2024.