SUMMARY
The Delhi HC said that Rahul Yadav’s 4B Networks has lost its right to file a response in the arbitration case filed by coworking space provider Innov8
The court had earlier granted an additional time of 10 days to 4B Networks to respond to the coworking space provider’s plea
Innov8 filed the case against 4B Networks under Section 11 of the Arbitration and Conciliation Act earlier this year for not paying rent amounting to INR 1.08 Cr
The Delhi High Court on Monday reportedly said that Rahul Yadav’s 4B Networks has lost its right to file a response in the arbitration case filed against the company by coworking space provider Innov8.
The court delivered the order after 4B Networks failed to file a response despite the HC granting a “last opportunity” to the company in association with Innov8’s arbitration plea against it for not paying rent amounting to INR 1.08 Cr, as per an Economic Times report.
Innov8 filed the case against 4B Networks under Section 11 of the Arbitration and Conciliation Act earlier this year after it failed to receive any response to calls and emails from Yadav pertaining to the rent payment.
During the previous hearing in the case on July 31, 4B Networks had sought more time to file its reply and the HC granted it an additional time of 10 days.
Besides not responding on the matter to HC, 4B Networks and its founder Yadav reportedly had no representation in the court during Monday’s proceedings.
The HC scheduled the next hearing in the case on October 10. However, no arbitrator has reportedly been appointed in the case.
Currently, the startup is also under arbitration with its former investor Info Edge.
In July, Info Edge filed an arbitration suit against 4B Networks after the startup failed to provide crucial information during the forensic audit into the affairs of the proptech startup.
Prior to that, Info Edge wrote off its entire investment in 4B Networks. Inc42 exclusively reported after that about the troubles at 4B Networks, including unpaid dues of vendors and pending salaries of employees.
Meanwhile, a Rajasthan-based vendor has also filed an FIR against Yadav for alleged fraud and criminal breach of trust under sections 406, 409, 420, 34 of the Indian Penal Code.
