October 25, 2020

curefit: Courtroom restricts CureFoods from promoting movable property

BENGALURU: A industrial courtroom in Bengaluru has handed an injunction order in opposition to CureFoods, a subsidiary of well being and health startup Curefit, restraining the corporate from promoting any movable property like kitchen tools.

The case was filed by CureFoods’ landlord who moved to courtroom searching for interim protecting measures in opposition to the agency for allegedly withholding lease 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. Lease was payable from Might 1 after the owner undertook remodelling work to the corporate’s specs. ET has reviewed a duplicate of the grievance.

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 vital service in the course of the nationwide shutdown.

Curefit mentioned it can not touch upon a “sub-judice” matter. It, nevertheless, clarified that meals gross sales stay unaffected. “We aren’t stopping our meals gross sales,” the corporate’s spokesperson mentioned.

“Ease of doing enterprise requires that contracts are honoured. We welcome the continued safety of contractual rights,” Arjun Rao, Companion at Bhat & Rao, mentioned.

Earlier this month, Curefit undertook a second spherical of layoffs and furloughs, impacting 600 staff, two months after it laid off over 700 staff.

Except for shuttering a few of its health centres below the CultFit model, the corporate has additionally shut down various 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 will not be alone. A number of corporations together with Oyo, Paytm, Ola, Swiggy, Zomato, Uber amongst others have reached out to builders to renegotiate pan-India rental agreements, renewal clauses, lease escalations and so forth. to cut back long-term mounted asset prices.