Future Ent to quantify receivables from FRL and submit claims before IRP

The National Company Law Tribunal on Wednesday ordered insolvency resolution proceedings against Future Retail

Future Enterprises said it will quantify its receivables from Future Retail and submit its claim before the Interim Resolution Professional (IRP) as per the provisions and process prescribed under Section 7 of the Insolvency and Bankruptcy Code 2016, including applicable rules made thereunder, the company said in a stock exchange filing.

It said that it has substantial and significant amount of receivables from Future Retail as against the business transactions undertaken in ordinary course of business.

This comes after the Mumbai bench of National Company Law Tribunal (NCLT) on Wednesday admitted Bank of India’s petition under Section 7 of Insolvency and Bankruptcy Code to start insolvency proceedings against Future Retail and also appointed an IRP in the matter.

In the written order, the two judge bench, presided over by Justice Pradeep Narhari Deshmukh and Shyam Babu Gautam, said, “Bench is of the view that the existence of debt and default has been proved, therefore, we hereby admit this company petition… we hereby appoint Mr. Vijay Kumar V Iyer as an IRP, with a direction to the financial creditor to pay remuneration to the IRP and his expenses until the constitution of CoC." CoC is Committee of Creditors.

Bank of India had moved the insolvency petition against Future Retail back on April 14 for non-payment of dues under the terms of agreement entered into between the Future Group and the public sector lender. It was seeking admission of its petition and the appointment of an IRP.