NCLT Bangalore Defers Order on Dunzo Insolvency Plea for Third Time

The NCLT, Bangalore, has once again deferred its order on the insolvency petition against Dunzo, citing time constraints, despite multiple listings

As per the IBC, the NCLT must admit or reject the insolvency petition within 14 days of filing, but in Surendra Trading Co. v. Juggilal Kamalpat, the Supreme Court held this timeline to be directory, not mandatory, allowing the NCLT some discretion in adhering to it. 

The Tribunal has criticised dunzo for failing to respond on time, even forfeiting its right to file a reply in some instances. 

Dunzo has faced a liquidity crisis with operational disruptions like delayed salaries and vendor payments. The matter is now listed for May 27.