The National Company Law Appellate Tribunal (NCLAT) has dismissed an appeal by beleaguered homestay start-up Stayzilla against the insolvency process order by the Chennai bench of NCLT. The NCLAT bench comprising justice SJ Mukhopadhaya, chairperson, justice AIS Cheema, member (judicial) and Balvinder Singh, member (technical), ruled that the bench found no merit in the appeal and ordered dismissal of the same. Arguing the case, the counsel for Yogendra Vasupal of Stayzilla submitted that there was existence of a dispute and therefore, the application under Section 9 of the ‘I&B Code’ was not maintainable. However, the NCLAT bench said from the appeal, they find that the document preferred by Jigsaw Solutions under whose initiation an insolvency process was ordered against Stayzilla, was complete.
Stayzilla had moved NCLAT against the insolvency process slapped on it on September 15 by the Chennai bench of NCLT on a petition filed by city-based advertising firm Jigsaw Solutions. The NCLT bench had appointed Karthigeyan Srinivasan as interim resolution professional and ordered completion of the process within 180 days. At the NCLT, Jigsaw argued that it was seeking the unpaid dues for the job undertaken by demanding dissolving of the troubled homestay start-up. The firm was hired by Stayzilla to do outdoor and bus-shelter publicity for the latter.
