Response to petition filed by a vendor of overseas affiliate to initiate insolvency solution process
Ricoh’s subsidiary, Ricoh India Limited (Headquarters: New Delhi, Bombay Stock Exchange – referred to as Ricoh India from here) yesterday announced that its vendor, Fourth Dimension Solutions (Headquarters: New Delhi, National Stock Exchange – referred to as FDS from here), as a creditor of Ricoh India, filed a petition with the National Company Law Tribunal to initiate insolvency solution process under the Insolvency and Bankruptcy Code of India.
FDS’ claim against Ricoh India is based on the alleged non-payment of a disputed debit note which FDS unilaterally raised as alleged damages for a contract determination. Ricoh India does not agree with these claims filed by the FDS and is pursuing the matter through legal representation.
Under Indian law, the commencement of insolvency solution process is decided by the National Company Law Tribunal, but at that time, the claims by FDS will be recognized together with confirming the existence of a default on behalf of Ricoh India. Ricoh India has stated that it will dispute the existence and validity of the claims in the petition by FDS.