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Vendor Jigsaw moves NCLT seeking insolvency proceedings against Stayzilla

The NCLT Bench on Thursday adjourned the matter for hearing to next week

BS Reporter  |  Chennai 

Yogendra Vasupal
Yogendra Vasupal, Founder, Stayzilla.

The dispute between online accommodation aggregator and one of its vendors, Jigsaw, saw  a new turn, with the latter approaching National Company Law Tribunal (NCLT). The Bench on Thursday adjourned the matter for hearing to next week.

The company approached seeking to initiate insolvency proceedings since has failed to pay the dues and stopped operations without clearing dues, said Aditya CS, founder of founder Yogendra Vasupal did not comment on the matter.

It may be noted that the dispute between the two triggered a series of discussions in the industry. The issue came to the light after announced its plan to halt operations with its existing model, with plans to restart with a different business model. Vasupal was arrested on March 14 on charges of allegedly cheating after complained that the dues of over Rs 1.69 crore were not paid by

complained that it was not paid the amount, which was due, and the Crime Branch initiated action against founders.

argued that it was a civil case and criminal charges were foisted to put pressure on the company's founder. It further argued that it is a dispute on account of non-performance of the obligations under the contract between the two

Various industry bodies had earlier united behind Vasupal and sought intervention of the government and leaders of various industry bodies including CII Start Up Council Chairman Kris Gopalakrishnan, NASSCOM Executive Council Member Ravi Gururaj has said that there is an immediate need to lay guidelines on business closures, while over 1000 entrepreneurs came out in support of Vasupal, through an online page

First Published: Thu, September 07 2017. 21:21 IST