NCLT dismisses insolvency petition against Dentsu Communication India

New Delhi: The Mumbai bench of the National Company Law Tribunal (NCLT) has dismissed an insolvency petition filed against Dentsu Communication India by Rohit Plastopack, citing insufficient evidence of operational debt and raising concerns over alleged fraudulent transactions involving former employees and third-party vendors, according to an ET report. 

The report stated that Rohit Plastopack had alleged a default of approximately Rs 5.42 crore for supplies of agricultural goods linked to a social campaign named “Need to Feed.” The supplies were purportedly ordered under Dentsu's CSR wing and delivered by Suumaya Agro, a third-party vendor.

However, the tribunal noted that the applicant failed to provide documentary evidence, such as weighbridge slips or delivery receipts, to establish the actual delivery of goods to Dentsu Communication. The bench, comprising Judicial Member KR Saju Kumar and Technical Member Sanjiv Dutt, stated, “The applicant has failed to produce any documentary evidence... to establish actual delivery of goods to the corporate debtor.”

Dentsu Communication, represented by Senior Counsel Ashish Kamat and Anindita Roy Chowdhury of AZB & Partners, argued that the transactions were unauthorised and orchestrated by former employees without management approval. The company alleged collusion between these employees, the operational creditor, and Suumaya Group entities, prompting criminal complaints and an ongoing probe by the Enforcement Directorate.

As per the report, the NCLT concluded that the burden of proof lies upon the applicant to demonstrate that goods were delivered to the corporate debtor, which was not fulfilled in this case. Consequently, the application filed under Section 9 of the Insolvency and Bankruptcy Code (IBC) was deemed not maintainable and was rejected.