NCLT asks AWIPL to settle insolvency matter

National Company Law Tribunal, Friday, asked Amazon Wholesale (India) Private Ltd to try settling the matter with it service provider Multiplier Brand Solutions Pvt Ltd.

Multiplier has filed an insolvency plea against Amazon Wholesale (India) Private Ltd for default of Rs 3.7 crore (excluding Rs 31 lakh as interest) for eight invoices raised between March 2023 and May 2023.

Multiplier sent a demand notice to AWIPL in November last year and filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016.

AWIPL has raised concerns regarding the invoices raised by AWIPL, deeming some of them fake and noted that it could not settle unless it was convinced.

Multiplier had initiated an investigation by EY to look into the concerns. The bench noted that both parties should try to reach a settlement before the next date of a hearing scheduled on February 13.

The counsel for Amazon observed that there was a need for the service provider to get its house in order. Multiplier has initiated criminal proceedings against employees in the fake invoice case.

The bench asked that Multiplier present the report by EY, noting that fake invoices were indeed a matter of concern.

The bench also noted that some amount is payable, but it needs to be determined how much of it is in dispute.

Multiplier had entered into a two-year agreement with Amazon Seller Services Pvt Ltd, another subsidiary of a foreign company, on May 1, 2019, which was executed in January 2020 for two years and was transferred by ASSPL to AWIPL.

AWIPL had filed a reply to the petition on February 6. The bench will hear further arguments next week.

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Roy Walsh

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