NCLT refuses to allow Dunzo to file response to insolvency pleas

The NCLT at Bengaluru refused to allow Dunzo to file responses to two insolvency petitions against it. The tribunal had closed Dunzo’s right to file a response in September 2024 after it failed to reach a settlement with its creditors. Dunzo, backed by Reliance Retail, has been facing financial troubles, including delayed salaries and office space issues. The NCLT listed the cases filed by invoice discounters and Velvin Packaging Solutions for final hearing on December 2. Dunzo had earlier informed the NCLT that it was exploring settlement possibilities, but failed to reach an agreement. The tribunal’s decision underscores the importance of timely responses in insolvency proceedings and the challenges faced by companies in financial distress. Dunzo’s financial troubles have been exacerbated by mounting losses and liquidity issues.