TVS Supply moves NCLAT against NCLT order rejecting insolvency against ZTE

TVS Supply Chain Solutions has moved appellate tribunal NCLAT, challenging an NCLT order which had rejected its plea to initiate insolvency against the Indian unit of telecom gear manufacturer ZTE. In October this year, a Chandigarh-based bench of the National Company Law Tribunal (NCLT), had dismissed the insolvency plea filed by TVS Supply Chain Solutions after observing a pre-existing dispute between the parties. The NCLT in its order had said that the debt claimed by TVS Supply Chain Solutions was disputed and under reconciliation dating back to 2017.

TVS Supply Chain Solutions, earlier known as TVS Logistics Services, had moved the insolvency tribunal claiming a default of Rs 4.27 crore from ZTE Telecom India by filing a plea under Section 9 of the Insolvency & Bankruptcy Code. The dispute is for the period June 2012 to February 2019. ZTE, a telecom equipment supplier for companies like Reliance, Tata, Aircel, and BSNL, had entered into two Master Service Agreements (MSAs) with TVS Supply Chain.