NCLT Orders Liquidation Of Stayzilla’s Parent Inasra

Published on 23 Oct 2018 by Shivi

The Chennai Bench of the National Company Law Tribunal (NCLT) has ordered the liquidation of Inasra Technologies Private Ltd, which runs the hotel and homestay aggregator business under the brand name Stayzilla.

The move comes as the committee of creditors did not receive any resolution plan for the revival of the firm and had recommended its liquidation.

Under the insolvency proceedings, a 270-day timeframe is given for finding a resolution plan for a beleaguered company.

If no resolution plan is arrived at within the timeframe, the company goes into liquidation.

READ: Corporate Insolvency Resolution Process (CIRP) Under IBC, 2016

Last year, Stayzilla’s payment dispute with one of its vendor Jigsaw Solutions took centre stage, after the company announced the closure of operations.

Post that, based on a complaint from Jigsaw, Stayzilla’s co-founder Yogendra Vasupal was arrested on charges of cheating and was later released on bail.

Jigsaw had filed insolvency proceedings against Inasra for non-payment of dues amounting to Rs. 1.69 crore. In September last year, the Chennai bench of the NCLT had ordered the initiation of the insolvency resolution process against Inasra.

Mr. Vasupal moved the Supreme Court against the insolvency proceedings order and his appeal was dismissed.

Initially, Avva Jagannadham Athindranath was appointed as the liquidator for the company. However, after he expressed his inability to take up the appointment, G. Ramaswamy was appointed in his place. Since Mr. Ramaswamy also chose to opt out, the NCLT has now appointed S. Kannan as the company liquidator.

SOURCE

Tags: Insolvency And Bankruptcy 

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