Goli Vada Pav vs Vista Processed Foods: NCLT Admits Insolvency Resolution Plea Against Fast-Food Restaurant Chain
The Mumbai branch of NCLT issued a ruling in response to a complaint from Vista Processed Foods Pvt Ltd on September 5. They claimed that Goli Vada Pav had not paid them Rs 3.56 crore.
Mumbai, September 10: The National Company Law Tribunal (NCLT) has admitted Mumbai-based fast-food restaurant chain Goli Vada Pav Pvt. Ltd. under the corporate insolvency resolution process (CIRP) and has appointed Vinod Radhakrishnan Nair as the resolution professional of the company.
The Mumbai branch of NCLT issued a ruling in response to a complaint from Vista Processed Foods Pvt Ltd on September 5. They claimed that Goli Vada Pav had not paid them Rs 3.56 crore. Vista informed the tribunal that in 2020, 2021, and 2022, the fast-food chain had provided signed balance confirmations, confirming and acknowledging the presence of undisputed debt. Vista alleged that Goli Vada Pav did not pay the debt despite repeated reminders. Go First Files for Bankruptcy, Pratt & Whitney Official Says Airline Has 'Lengthy History of Missing Financial Obligations'.
Goli Vada Pav contended that the complaint couldn't be considered because some of the invoices were older than three years. According to the Insolvency and Bankruptcy Code of 2016, a complaint can only be filed within three years of the default. The restaurant chain also argued that neither the purchase order nor the invoices mentioned charging interest for late payments, but Vista was insisting on it. So, they wanted the complaint to be dismissed based on this time limit and the lack of clear interest terms. Vice Media Group Files For Bankruptcy, Lenders Agree To Buy For Just USD 225 Million.
NCLT, in conclusion, 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."
Goli Vada Pav, established in 2004 by Venkatesh Iyer and Shiv Menon, operates approximately 300 stores in 100 cities, as stated on their company website. Vista Processed Foods is a branch of the OSI Group, a company based in the United States. They supply frozen vegetables and chicken patties to various fast-food chains in India.
(The above story first appeared on LatestLY on Sep 10, 2023 04:47 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).