Innov8 filed an arbitration case against 4B Networks in the Delhi High Court in April this year for failing to pay rent amounting to INR 1.08 Cr
4B Networks had taken on rent an entire floor of coworking space provider Innov8 in a building in Mumbai, apart from two partial floors in the same building
During the last hearing in the case on July 31, 4B Networks sought more time to file its reply, following which the HC granted it an additional 10 days for it
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There seems to be no end to the troubles of Rahul Yadav-led 4B Networks as Guerrilla Infra Solutions Private Limited, or Innov8, a coworking space provider, has dragged the startup to court over unpaid rents.
Innov8 filed an arbitration case in the Delhi High Court in April this year against 4B Networks.
“We had an entire floor of Innov8 in Boston House, Andheri East apart from other two partial floors in the same building,” a source told Inc42.
Meanwhile, Moneycontrol reported citing sources that 4B Networks did not pay rent amounting to INR 1.08 Cr for the Innov8 office space it rented in Mumbai. The troubled company reportedly did not give any notice to Innov8 and simply left the office one day.
Given the agreement between both parties had an arbitration clause, Innov8 had to go through the arbitration process before filing a criminal case, a source told the publication.
Innov8 filed the case under Section 11 of the Arbitration and Conciliation Act after its attempts to resolve the issue failed as Yadav did not respond to calls and emails, the publication reported.
As per the last court order dated July 31, 4B Networks sought more time to file a reply.
“Last opportunity is granted to file the same within a period of 10 days from today,” the court order accessed by Inc42 said.
The next hearing in the case was scheduled for August 28.
Last month, Info Edge, an investor in 4B Networks, said both the parties had agreed for an appointment of an arbitrator for their dispute. Info Edge alleged it did not receive crucial information from 4B Networks despite initiating a forensic audit into the affairs of the proptech startup, following which it moved the Delhi HC.
Earlier this year, Info Edge wrote off its entire investment in 4B Networks. In June this year, Inc42 exclusively reported about the troubles at 4B Networks, including unpaid dues of vendors and pending salaries of employees.
Recently, a Rajasthan-based vendor filed an FIR against Yadav for alleged fraud and criminal breach of trust with the Economic Offences Wing (EOW). Yadav allegedly defrauded Interspace Communications to whom Broker Network owes INR 10 Cr.
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