Future Retail to face insolvency proceeding
NCLT admits BoI’s plea to begin insolvency proceeding against Future Retail, while rejecting objection by Amazon
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Mumbai: The National Company Law Tribunal (NCLT) on Wednesday admitted Bank of India's (BoI) plea to initiate insolvency resolution proceedings against debt-ridden Future Retail Ltd (FRL).
The tribunal rejected Amazon's objection to initiating insolvency proceedings against Future Retail. Admitting the lenders' plea, the NCLT appointed Vijay Kumar Iyar as the resolution professional (RP) for FRL. In April this year, BoI moved the tribunal seeking insolvency resolution proceedings against FRL, which has defaulted on loan repayments.
On May 12, Amazon filed an intervention application under Section 65 of the Insolvency and Bankruptcy Code (IBC) that deals with provisions relating to penalty for fraudulent or malicious initiation of proceedings. Amazon had opposed the insolvency plea alleging that BoI had colluded with FRL and that any bankruptcy proceedings at this stage will compromise the e-commerce company's rights.
