Bengaluru court docket restricts Curefit’s meals subsidiary from promoting movable belongings, Know-how Information, ETtech
A industrial court docket in Bengaluru has handed an injunction order towards CureFoods, a subsidiary of well being and health startup Curefit, restraining the corporate from promoting any movable belongings like kitchen tools.
The case was filed by CureFoods’ landlord who moved to court docket looking for interim protecting measures towards the agency for allegedly withholding hire and failing to honour the lock-in interval within the lease.
Curefoods, which operates the EatFit model, took up workplace premises in Bengaluru for Rs 9.5 lakh a month by means of a registered lease dated January 27, 2020, with a three-year lock-in. Hire was payable from Could 1 after the owner undertook remodelling work to the corporate’s specs. ET has reviewed a duplicate of the criticism.
The corporate had despatched a termination discover claiming that it was unable to do enterprise owing to the Covid-19-induced lockdown. However the landlord argued that the meals supply enterprise continues to function, and was additionally deemed a necessary service through the nationwide shutdown.
Curefit stated it can not touch upon a “sub-judice” matter. It, nevertheless, clarified that meals gross sales stay unaffected. “We’re not stopping our meals gross sales,” the corporate’s spokesperson stated.
“Ease of doing enterprise requires that contracts are honoured. We welcome the continued safety of contractual rights,” Arjun Rao, Companion at Bhat & Rao, stated.
Earlier this month, Curefit undertook a second spherical of layoffs and furloughs, impacting 600 staff, two months after it laid off over 700 employees.
Other than shuttering a few of its health centres beneath the CultFit model, the corporate has additionally shut down a variety of its EatFit cloud kitchens. Earlier this 12 months, the startup had raised round Rs 832 crore in a funding spherical led by Temasek, the Singapore government-backed funding firm.
Curefit isn’t alone. A number of firms together with Oyo, Paytm, Ola, Swiggy, Zomato, Uber amongst others have reached out to builders to renegotiate pan-India rental agreements, renewal clauses, hire escalations and many others. to cut back long-term fastened asset prices.