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TVS Supply Chain Disputes ZTE's ₹4.27 Crore Debt Claim
18 Dec
Summary
- TVS Supply Chain challenged NCLAT order rejecting insolvency plea against ZTE.
- NCLT cited pre-existing dispute and disputed debt dating back to 2017.
- The dispute concerns ₹4.27 crore debt claimed by TVS Supply Chain from ZTE.
TVS Supply Chain Solutions has escalated a dispute to the appellate tribunal (NCLAT), challenging a prior National Company Law Tribunal (NCLT) order. The NCLT had previously dismissed TVS's request to initiate insolvency proceedings against ZTE Telecom India. The NCLT's decision, issued by a Chandigarh bench in October 2025, was based on the observation of a pre-existing dispute and disputed debt.
The core of the issue revolves around a claimed default of ₹4.27 crore by ZTE Telecom India, as alleged by TVS Supply Chain Solutions. This debt stems from Master Service Agreements established between the two companies. TVS contends that ZTE has consistently made only partial payments or delayed payments, citing invoice discrepancies and leading to outstanding amounts since 2012.
ZTE has contested the debt, pointing to purported discrepancies totaling ₹5.60 crore in invoices raised by TVS. Despite multiple rounds of reconciliation and audit queries, a resolution was not reached, leading TVS to file the insolvency petition in May 2019. The NCLT ultimately ruled that the debt was never admitted by ZTE and that the matter involved ongoing disputes.
