NCLT admits insolvency plea against V2 Retail

New Delhi, July 6 (SocialNews.XYZ) The Delhi bench of the National Company Law Tribunal (NCLT) has admitted an insolvency plea against retail chain V2 Retail.

The insolvency application was filed under Section 9 of the Insolvency and Bankruptcy Code (IBC) by an operational creditor, Totem Media Solutions Private Ltd which is into several business activities including sale of advertising print space.

According to the operational creditor, 24 invoices were raised for orders placed by V2 Retail for purchase of advertising print space during July 2018 to May 2019, out of which over Rs 86.61 lakh remain due including the interest.

The operational creditor sent reminders for payment on six instances through e-mail but the dues were not paid.

On a notice sent by the creditor, the corporate debtor replied that the invoices reflect excessive and arbitrary rates.

According to V2 Retail, it has already paid a sum of over Rs 17.84 lakh to the Totem Media Solutions and the former's bank showed a payment of over Rs 26.64 lakh towards the creditor.

Post the order as per the Insolvency and Bankruptcy Code the powers of the Board of Directors of V2 Retail stand suspended and such powers are vested with the insolvency professional Amit Gupta with effect from the insolvency commencement date, June 25, 2020.

V2 Retail CMD Ram Chandra Agarwal founded Vishal Megamart Ltd in 2001, and the brand 'Vishal' was sold in 2011, post which 'V2 Retail' came into existence.

The company currently has 73 operational stores after it announced to shut two stores last week, one in Lakhisarai, Bihar and the other in Davangere, Karnataka.

Source: IANS