Brands
Rapido drags Magicpin to NCLT over alleged Rs 10 crore operational dues
Tribunal issues notice to Magicpin as dispute centres on payment reconciliation and logistics costs
MUMBAI: Rapido has approached the National Company Law Tribunal (NCLT) against hyperlocal e-commerce company Magicpin over alleged unpaid operational dues of close to Rs 10 crore, Business Standard reported.
The insolvency application has been filed by Roppen Transportation Services Pvt Ltd, the entity that operates Rapido, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The provision allows an operational creditor to seek initiation of insolvency proceedings in the event of an alleged payment default.
The Chandigarh Bench of the NCLT has issued notice to Magicpin seeking its response. The tribunal has not admitted the petition at this stage and has not made any finding on the merits of Rapido’s claim.
The alleged dues relate to payment reconciliation and expenses incurred by Rapido for delivery and logistics services.
The matter came up before the tribunal on 25 August, following an initial notice issued on 4 August. Magicpin’s counsel sought additional time to file the company’s response.
The two-member Bench, comprising K.K. Singh, Member (Technical), and Ashok Kumar Bhardwaj, Member (Judicial), granted Magicpin one week to submit its response. The tribunal also directed that any rejoinder be filed before the next hearing, scheduled for 5 October 2026.
The insolvency dispute follows a partnership between the two companies around Rapido’s food delivery platform Ownly.
Under the arrangement, Magicpin was to give Ownly access to its network of more than 80,000 restaurants, enabling Rapido to expand its food delivery operations beyond Bengaluru. Magicpin was also expected to use Rapido’s delivery fleet in select locations.
Magicpin has previously powered food delivery services for platforms including Paytm and PhonePe.
The insolvency proceedings are currently at the notice stage. Magicpin’s response and the 5 October hearing are expected to determine how the matter proceeds before the NCLT.
Separately, Rapido operator Roppen Transportation Services Pvt Ltd is facing regulatory action from the Central Consumer Protection Authority (CCPA). The consumer watchdog imposed a Rs 10 lakh penalty on the company over alleged misleading advertisements, unfair trade practices and the use of dark patterns. The alleged practices encouraged riders to make higher payments before their rides had been confirmed.
