TVS vs. ZTE: The Telecom Insolvency Battle

TVS Supply Chain Solutions is contesting the NCLT's decision to dismiss its insolvency plea against ZTE Telecom India, citing a debt dispute. A previous tribunal rejected TVS's claim due to pre-existing disagreements dating back to 2017, yet the company argues unresolved payments persist.

TVS Supply Chain Solutions has appealed to the National Company Law Appellate Tribunal (NCLAT), challenging a National Company Law Tribunal (NCLT) order that rejected its attempt to initiate insolvency proceedings against ZTE Telecom India.

The NCLAT registrar granted TVS Supply Chain more time to address deficiencies in its plea, which has been scheduled for a hearing. This comes after the NCLT dismissed TVS Supply Chain's insolvency application, citing a pre-existing dispute between the parties.

The disagreement traces back to 2017, with TVS asserting a default of Rs 4.27 crore against ZTE. Despite invoices detailing outstanding payments, ZTE contests these, maintaining discrepancies exist. The NCLT observed unfinished financial reconciliations before rejecting TVS's insolvency bid.