Initiation of Litigation against the Company
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Galaxy Cloud Kitchens has been dragged into NCLT Mumbai by the Resolution Professional of NuFuture Digital (India) Limited, which is undergoing insolvency proceedings. The RP has filed an interlocutory application alleging that a Rs. 50 lakh repayment made by NuFuture to Galaxy during NuFuture's period of financial distress qualifies as a preferential transaction under Section 43(2) of the Insolvency and Bankruptcy Code. The RP is seeking reversal of this repayment. Galaxy has stated it is seeking legal advice and will take appropriate steps, but currently cannot quantify the potential financial impact. The company has committed to keeping the exchange updated on further developments.
The disputed amount of Rs. 50 lakh is relatively small for a listed company, but any adverse NCLT order could force Galaxy to return the money and set a precedent for similar claims. The unresolved litigation adds near-term legal uncertainty, though management appears to be handling the matter proactively.