Mahesh Bhupathi, Lara Dutta file insolvency case against Gitanjali Gems
The insolvency petition by the Gitanjali Gems brand ambassadors is for their contractual dues as an operational creditor.business Updated: Dec 21, 2017 07:55 IST
Brand ambassadors of Gitanjali Gems Ltd, Mahesh Bhupathi and Lara Dutta have filed an insolvency petition as operational creditors against the jewellery manufacturer and retailer, according to the website of National Company Law Tribunal (NCLT).
The case in the Mumbai bench of the Tribunal by the celebrity couple to recover their contractual dues, is first of its kinds.
Mahesh Bhupathi and his counsel Aagam J Doshi declined to offer any comments. Gitanjali Gems also did not offer any comments.
“Both the brand ambassadors have a two year contract with the company for public appearances. During the tenure of the contract there were some cancellations for which the company did not pay up their dues to the celebrity couple,” said a person with direct knowledge of the matter.
“The insolvency petition by the tennis player and actress is for their contractual dues as an operational creditor,” said a second person confirming the developments declining to be named.
Mint could not ascertain the pending dues for which Bhupathi and Dutta initiated insolvency proceedings against Gitanjali Gems under the Insolvency and Bankruptcy Code (IBC).
Gitanjali Gems was trading at Rs 69.65 on Wednesday closing.
At least 400 companies are undergoing resolution under the insolvency and bankruptcy code. These petitions have been initiated by operational and financial creditors against insolvent companies.
Some unique cases of vendors taking to companies to insolvency includes a stock exchange, public relations (PR) firm and advertising firm.
On 13 December, BSE Ltd became the first stock exchange to take firms to insolvency. BSE has taken firms that have failed to pay up their annual listing fees to the bankruptcy court.The exchange has identified 130 such companies and in the first round, it has already filed insolvency proceedings against seven.
Fortuna Public Relations Pvt, a PR firm on 4 December filed a case of insolvency for dues worth Rs43 lakh against Reliance Communications Ltd.
Jigsaw Solutions, an advertising agency had moved NCLT against Stayzilla an online homestay aggregator on 7 September. The insolvency petition now admitted by NCLT, claimed that Stayzilla had defaulted on paying dues of Rs1.69 crore.