Delhi HC says 4B Networks’ right to respond in arbitration plea by Innov8 stands closed, ET RealEstate

August 28, 2023

The Delhi High Court on Monday said real estate startup 4B Networks has lost the right to file its response in a suit filed against the company by coworking space company Innov8.

The order came after 4B Networks failed to file a response despite being granted a “last opportunity” by the court in an arbitration suit filed against it for allegedly not paying dues to Innov8 amounting to over Rs 1 crore.

A single judge bench of Justice Sachin Datta hearing Innov8’s arbitration plea against 4B Networks had on July 31 given the latter a last opportunity to file its response within 10 days and set the next date of hearing on Monday. However, the lawyer for the petitioners brought to the court’s notice that no response has been filed on record by the accused.

Further, no one representing 4B Networks, or its founder Rahul Yadav, attended Monday’s proceedings. The court has set October 10 as the next date for hearing.

While arbitration proceedings have already commenced with Innov8 alleging that 4B Networks had not paid dues for utilising its premises, no arbitrator has yet been formally appointed.

4B Networks is also currently under arbitration with its investor Info Edge India after the consumer internet group alleged that the startup failed to provide requisite information about its financial transactions for a forensic audit instituted by Info Edge.

Late last week, based on a request made by the Mumbai police, a look out circular (LoC) was opened against 4B Networks founder Rahul Yadav, who also founded

The city police booked Yadav, his associate Sanjay Saini and the company, 4B Networks for cheating, criminal breach of trust and common intent of the Indian Penal Code (IPC) based on a complaint registered by a Rajasthan-based businessman.

Founded in November 2020, 4B helps real estate developers and brokers communicate with each other and conduct business via the Broker Network Platform. It also helps brokers conduct site visits and provide home loan-related services to clients.

Info Edge had written off its equity investment of Rs 276 crore in 4B Networks during the December 2022 quarter citing “excessive cash burn, prevailing liquidity issues and significant uncertainty towards funding options”.

On August 11, addressing a post-earnings analysts’ call, Info Edge cofounder Sanjeev Bikhchandani said that backing Yadav’s 4B Networks was a mistake. “You can’t write off Rs 288 crore; it was a mistake,” he said.

  • Published On Aug 28, 2023 at 06:29 PM IST

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Abhay Singh

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