NCLT orders insolvency resolution process against Stayzilla
The Chennai bench of National Company Law Tribunal (NCLT) today ordered commencement of the corporate insolvency resolution process against online homestay startup Stayzilla and asked them to pay the outstanding dues to JigSaw Advertising and Solutions.
"The operational creditor (Jigsaw) has fulfilled all the requirements of law ...We are satisfied that corporate debtor (Stayzilla) committed default in making payment of outstanding debt," NCLT said in its order.
"Therefore, we order commencement of the corporate insolvency resolution process which ordinarily shall get completed within 180 days, reckoning from the day this order is passed," it said.
Jigsaw had alleged Stayzilla had defrauded it to the tune of about Rs 1.68 crore for services it rendered since last year.
NCLT also appointed an Interim Resolution Professional to take over the company assets for liquidation and pay off all the dues owed to the prosecutor --Jigsaw.
"We appoint Mr Karthigeyan Srinivasan, as IRP as proposed by the operational creditor .. The IRP is directed to take charge of the corporate debtor's management immediately," NCLT said.
It also directed IRP to cause public announcement within three days from the date the copy of the order is received, and call for submissions of claim in manner prescribed.