The mobile platform Rapido has initiated bankruptcy proceedings against the local e-commerce platform Magicpin in the National Company Law Tribunal (NCLT) due to alleged outstanding operational expenses amounting to less than 10 crore rupees.
As a result of this action, the NCLT Bench in Chandigarh issued a notice to Magicpin demanding a response. The core of the dispute revolves around the operational debts claimed by Rapido.
However, the tribunal has not yet accepted the bankruptcy petition nor determined the validity of the claim. A crucial factor for the case's future development will be Magicpin's response and the subsequent hearing.
Previously, Rapido and Magicpin collaborated to expand the business of Rapido's food delivery service, known as Ownly. Under the partnership, Magicpin provided access to its nationwide network of over 80,000 restaurants. The goal was to help Ownly expand beyond Bangalore, while Magicpin was required to utilize Rapido's fleet in specific areas. It is worth noting that Magicpin previously provided food delivery services for platforms such as Paytm and PhonePe.
According to informed sources, the amount involved in the case is less than 10 crore rupees and relates, among other things, to payment reconciliation, as well as expenses incurred by Rapido for logistics and delivery.
Rapido, registered as Roppen Transportation Services Private Limited, filed the petition under Section 9 of the Insolvency and Bankruptcy Code (IBC) 2016. This section allows an operational creditor to initiate corporate insolvency resolution in case of alleged default on obligations.
Case Review Process
According to case details, the tribunal first issued the notice on August 4th. In a subsequent hearing on August 25th, the legal counsel representing Magicpin requested additional time to file its response. The two-member Bench, comprising Member (Technical) K.K. Singh and Member (Judicial) Ashok Kumar Bhardwaj, granted Magicpin one week to submit its reply. The tribunal also ruled that any rejoinder memorandum must be submitted before the next hearing, which is scheduled for October 5, 2026.
At the August 25th hearing, Rapido was represented by advocates Gulshan Kr. Sachdev, Jatin Arora, and Ishaan Goel. Magicpin was represented by advocates Prachi Yohri, Monica Shah, Sachin Jain, and Himanshu Sharma.