NCLT admits insolvency resolution plea against Goli Vada Pav

Goli Vada Pav

The National Company Law Tribunal (NCLT) has admitted Mumbai-based fast-food restaurant chain Goli Vada Pav Private Limited to the corporate insolvency resolution process following its alleged failure to pay a debt of Rs 3.56 crore.

The Mumbai bench of NCLT passed the order on September 5 on a plea of Vista Processed Foods Pvt Ltd, which alleged that Goli Vada Pav failed to make a payment of Rs 3.56 crore. Vista told the tribunal that in 2020, 2021 and 2022, the fast-food chain provided signed balance confirmations, admitting and acknowledging the existence of undisputed debt.

According to Vista, Goli Vada Pav did not pay the debt despite repeated reminders.

Goli Vada Pav argued that the plea was barred by limitation as some of the invoices were more than three years old. As per the Insolvency and Bankruptcy Code, 2016, a plea can be filed for up to three years after default.

Seeking the dismissal of the please on limitation, the restaurant chain contended that neither the purchase order nor the invoices stipulated that interest could be charged on delayed payment but Vista was insisting on it.

Tribunal's conclusion

Goli Vada Pav's only defence was that the plea was barred by limitation and the restaurant chain had not denied or refuted any other facts., NCLT said.

If the facts pleaded in the petition are not specifically denied in the reply, the same are deemed to have been admitted,  therefore, the other contentions raised by Goli Vada Pav during arguments were liable to be rejected, it said.

"We are of the considered view that Vista Processes Foods has been able to establish the existence of the debt due on account of supply of goods to Goli Vada Pav in respect of which default has been committed by the latter," NCLT said.

The bankruptcy court admitted the plea and appointed Vinod Radhakrishnanan Nair as the insolvency resolution professional. The order also directed Vista to deposit Rs 3 lakh as initial costs.