The Chennai bench of NCLT on Thursday adjourned till September 12 the hearing on the insolvency proceedings filed against beleaguered homestay aggregator Stayzilla by the the Chennai-based Jigsaw Solutions, one of its vendors, which claims to have unpaid dues from the start-up.
The Chennai bench of the National Company Law Tribunal (NCLT) on Thursday adjourned till September 12 the hearing on the insolvency proceedings filed against beleaguered homestay aggregator Stayzilla by the the Chennai-based Jigsaw Solutions, one of its vendors, which claims to have unpaid dues from the start-up. Jigsaw Solutions moved the NCLT five months after Yogendra Vasupal, the co-founder and CEO of Stayzilla, was granted bail by the Madras High Court after spending close to a month in jail in a case filed by the company alleging default of payment.
In the petition filed by Jigsaw at NCLT, the company has now sought direction to dissolve Stayzilla, terming it a failed company. The hearing which was to commence on Thursday was deferred to next Tuesday as Jigsaw Solutions’ counsel was unavailable.
Jigsaw Solutions, an advertising agency run by CS Aditya, filed a petition requesting for initiation of corporate insolvency as an operational creditor under Section 9 of the Insolvency & Bankruptcy Code 2016 against Inasra Technologies — the company which owns Stayzilla. Talking to FE, Aditya said: “His business has failed, he is a failed entrepreneur and he never made a profit for a single day. He did not have the ethics of clearing the dues before shutting shop. So, my only option as a creditor is to go for appeal for insolvency to get my money out.”
The Chennai crime branch had arrested Vasupal on March 14 based on a complaint file by Aditya for offences under sections 406 (punishment for criminal breach of trust), 420 (cheating) and 506 (i) (criminal intimidation) of the IPC.
According to the complainant, Stayzilla had failed to make payments for advertising services rendered by him since February 2016 and defrauded him to the tune of Rs 1.7 crore.
However, Stayzilla maintained that the criminal charges against it were part of pressure tactics to settle a civil dispute. Vasupal had on February 23 this year announced that he would be bringing to a halt the operations of Stayzilla in its current form and is looking to reboot it with a different business model.
Stayzilla had raised close to $30 million in funding so far, besides an undisclosed amount in its Series A round, from investors including Nexus Venture Partners and Matrix Partners.
In February 2015, it raised $15 million in Series B funding led by venture capital firm Nexus Venture Partners, with participation from existing investor Matrix Partners India. The jailing of Vasupal saw the start-up community and veterans in the information technology sector rallying behind the troubled co-founder of Stayzilla, seeking fair treatment for him.