Insolvency Petition Filed Against Vishal Mega Mart Over ₹1.3 Crore Operational Debt
Corporate Insolvency Proceedings May Be Initiated If NCLT Admits Petition
A petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, has been filed before the National Company Law Tribunal (NCLT), Delhi, against Vishal Mega Mart Ltd., one of India’s leading retail chains. The petition has been moved by Zuree Diseno Pvt. Ltd., an operational creditor, through Advocate Karan Singh Choudhary & Rohit Aggarwal (Founder of Unity Law Attorneys), alleging a default in payment of operational dues amounting to ₹1.3 crore.
The operational creditor contends that despite repeated demands and service of statutory notice under Section 8 of the IBC, Vishal Mega Mart Ltd. failed to repay the outstanding amount, thereby warranting initiation of corporate insolvency resolution process (CIRP) under Section 9 of the Code.
According to the petition, the unpaid amount relates to goods/services provided to Vishal Mega Mart in the ordinary course of business. Zuree Diseno Pvt. Ltd. has claimed that the default is clearly established, and there exists no bona fide dispute regarding the debt.
“In view of the continued default and the absence of lawful response from the corporate debtor, the petitioner is constrained to approach this Hon’ble Tribunal seeking initiation of insolvency proceedings,” the plea states.
If the petition is admitted by the NCLT, the tribunal may declare a moratorium under Section 14 of the IBC, appoint an interim resolution professional, and vest the management of Vishal Mega Mart in the Committee of Creditors (CoC).
The development assumes significance as it may lead to major operational implications for the retail giant, which has a widespread presence across India with hundreds of stores catering to value-conscious customers.
Legal experts observe that operational creditors filing insolvency petitions often face scrutiny regarding the existence of a “pre-existing dispute,” a critical factor under Section 9 proceedings. It remains to be seen whether Vishal Mega Mart raises any such defense or seeks to settle the matter before the petition is admitted.
The case is expected to come up for preliminary hearing shortly before the NCLT, Chandigarh Bench.
