Following a petition accusing the smartphone brand OPPO of non-payment, the Chandigarh bench of the National Company Law Tribunal (NCLT) recently issued a notice to the Chinese smartphone company, hinting that it may face a corporate resolution resolution (CIRP) under the Insolvency and Bankruptcy Code, 2016.
The petition was filed by Hipad Technology India Private Limited, a Chinese phone manufacturer and also one of OPPO’s suppliers. He alleged that OPPO did not pay his dues of Rs 17 crore.
According to the NCLT’s September 9 notice, if OPPO does not give confidence to the court that it is able to repay its debt to Hipad, the NCLT, in all probability, will appoint an expert professionally solve financial problems to replace the current supporters of the company. .
Hipad, which produced mobile phones in India until 2019, itself faced a crisis in December 2020 when one of its creditors, the Bank of India and Bank of China (ICBC), approached the NCLT over loan defaults.
A source close to Hipad told Outlook that the NCLT has appointed a liquidator who is currently taking stock of the financial institution. “While doing so, the businessman came to know that OPPO had to pay Rs 17 crore to the company against the services and products he had done,” he said, requesting anonymity.
In June 2022, Hipad decided to file an application under Article 9 of the IBC, which deals with the initiation of CIRP by the creditor, Hipad in this case, after OPPO failed to meet its financial obligations even though the investor raised the demand in April 2022.
Outlook contacted Ajit Kumar, Hipad’s liquidator, but there was no response. Outlook also reached out to Rishabh Maheshwari, OPPO India’s in-house counsel, but did not receive a response by the time of the story’s publication.
Founded in 2004, Oppo is recognized as the world’s leading smart device maker and innovator with a footprint in more than 50 countries and regions.