Mahesh Bhupathi and Lara Dutta file insolvency appeal against Gitanjali Gems

What's the story?

Indian tennis star Mahesh Bhupathi and actress Lara Dutta have filed an insolvency plea against Gitanjali Gems according to the website of National Company Law Tribunal (NCLT).

The two are the ambassadors of the brand and if reports are to be believed, Bhupathi has filed the petition in the Mumbai bench of the tribunal in a bid to recover their contractual dues.

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Bhupathi and Dutta agreed to a two-year contract with the brand and were also expected to make public appearances for the company whenever required. However, there were some cancellations regarding their availability for the same and the company refused to pay their dues.

This is a first-of-its-kind case in the Mumbai division of the NCLT and the couple is believed to have filed the petition against the company under the Insolvency and Bankruptcy Code (IBC) over their pending dues.

Heart of the matter

Gitanjali Gems had a debt of Rs 7,185 crore at the end of September but they had reported an overall net profit of Rs 63.8 crore for the September quarter, an increase of 41% compared to last year.

A spokesperson close to the company also revealed that the couple, who signed a two-year contract for as many as 4 public appearances in 2016 and 2017, have only managed to make 2 appearances in public with respect to the brand.

What next?

Mahesh Bhupathi and his counsel Aagam L Doshi refused to shed light on the incident and will wait until the final verdict comes out.

Author's take

The celebrity duo has once again made the headlines in India but they wouldn't be very happy about the manner in which they achieved the same.