Multiplier Brand Solutions Seeks NCLAT Intervention in Amazon Wholesale Dispute

Multiplier Brand Solutions has approached the National Company Law Appellate Tribunal (NCLAT) to contest a decision by the National Company Law Tribunal (NCLT), which dismissed its insolvency plea against Amazon Wholesale India. The appeal is scheduled for a hearing on July 15, as directed by a three-member NCLAT bench, including Chairperson Justice Ashok Bhushan.

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On March 5, 2024, the NCLT's Delhi bench rejected the insolvency plea filed by Multiplier Brand Solutions. The company, an operational creditor, had filed the plea under Section 9 of the Insolvency & Bankruptcy Code. They alleged a default of Rs 3.7 crore for eight invoices issued between March and May 2023.

Dispute Over Payment

Multiplier Brand Solutions had entered into a novation and substitution agreement in Bengaluru involving Amazon Seller Services and Amazon Wholesale India. However, Amazon opposed this and claimed there was a dispute regarding the amount before the demand notice was issued. The NCLT agreed with Amazon's stance and dismissed the plea.

The NCLT stated that it was not expressing any opinion on the entitlement or claim raised by Multiplier Brand Solutions against Amazon Wholesale India. "In view of the aforementioned, particularly the dispute raised by the corporate debtor regarding its liability to pay the amount demanded by the operational creditor and being bound by the aforementioned judgment of the Supreme Court, we are unable to order commencement of CIRP qua the corporate debtor," said NCLT.

Legal Proceedings

Multiplier Brand Solutions challenged this order in April before the appellate tribunal, NCLAT. The company seeks to overturn the NCLT's decision and proceed with its insolvency plea against Amazon Wholesale India.

The case highlights ongoing legal battles between companies over financial disputes and contractual obligations. The outcome of this appeal could have significant implications for both parties involved.