Mahesh Bhupathi, Lara Dutta take Gitanjali Gems to insolvencyLast updated on Dec 21, 2017, 10:36 am
Mahesh Bhupathi and Lara Dutta, brand ambassadors of Gitanjali Gems, have taken the company to insolvency as operational creditors.
The couple had a two-year contract with Gitanjali for public appearances, but "there were some cancellations for which the company didn't pay their dues," Mint quotes sources as saying.
This is a first-of-its-kind case in the Mumbai bench of the National Company Law Tribunal (NCLT).
What's the case about?
According to sources, the couple filed insolvency proceedings against the firm under the Insolvency and Bankruptcy Code (IBC) over pending dues.
But Gitanjali says they have made public appearances for only two out of the mandated four days in 2016-17.
So "payment is due only on pro rata basis for the part services performed".
"The matter is pending for adjudication," a Gitanjali spokesperson said.
At September end, Gitanjali had a debt of Rs. 7,185cr
At the end of Q3 2017, Gitanjali had reported net profits of Rs. 63.8cr, a 41% jump from last year. However, it still had a debt of Rs. 7,185cr. On Wednesday, the day the case was listed, it closed at Rs. 69.65.
400 companies undergoing resolution under IBC
Currently, over 400 companies are undergoing resolution under the IBC. According to one study, one of two petitions has been filed by operational creditors.
Earlier this month, BSE Ltd identified 130 companies that have failed to pay their annual listing fees; insolvency proceedings have been started against seven.
Cases have also been filed against Reliance Communications and Stayzilla over pending dues.