NCLT Orders Liquidation of Future Retail

30 Jul 2024 , 12:11 PM

The Mumbai bench of the National firm Law Tribunal (NCLT) has admitted Kishore Biyani-promoted Future Retail Ltd to liquidation in the lack of a feasible recovery strategy for the firm. The tribunal also named Sanjay Gupta as the company’s liquidator.

The division bench of judicial member Kuldip Kumar Kareer and technical member Anil Raj Chellan, while allowing the company’s resolution professional Vijaykumar V. Iyer’s application to admit the company to liquidation, noted that the CIRP’s maximum period had expired and no Resolution Plan had been approved by the CoC.

The company has admitted liabilities of more than ₹28,452 Crore. This includes secured financial creditors’ claims totalling around ₹14,422 Crore.

“We are of the considered opinion that this is a fit case for liquidation,” the panel said. “. To maximise the value of the Corporate Debtor, the Liquidator shall endeavour the sale of the Corporate Debtor as a going concern under Regulation 32A clause (e) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulation, 2016,” according to the tribunal’s ruling.

Last November, the firm’s RP told the stock exchange that the lenders had rejected Space Mantra Pvt Ltd’s Future Retail resolution plan and hence opted to admit the company to liquidation.

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