Future Retail case: NCLT to continue hearing Amazon's plea on June 14

A plea seeking initiation of insolvency resolution proceedings against Future Retail Ltd (FRL) was filed by Bank of India (BoI), the lead banker in the consortium of lenders of the company

big bazaar
Press Trust of India Mumbai
2 min read Last Updated : Jun 10 2022 | 11:17 PM IST

The National Company Law Tribunal (NCLT) has adjourned till June 14 hearing of Amazon's petition opposing initiation of insolvency proceedings against debt-ridden Future Retail Ltd.

After hearing the arguments of Rajiv Nayar, counsel of the e-commerce giant, the NCLT Mumbai bench said it will continue the hearing of the matter on June 14.

A plea seeking initiation of insolvency resolution proceedings against Future Retail Ltd (FRL) was filed by Bank of India (BoI), the lead banker in the consortium of lenders of the company.

On June 6, the Mumbai bench of the tribunal held a virtual hearing in the matter. BoI's petition is yet to be admitted.

On May 12, Amazon had 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 application alleging that BoI had colluded with FRL and any bankruptcy proceedings at this stage will compromise the e-commerce company's rights.

It was the third time that the NCLT, on June 6, decided to have another hearing before deciding on admitting BoI's petition against FRL.

In April, BoI had moved the tribunal seeking to initiate insolvency proceedings against FRL, which has defaulted on loan repayments of Rs 5,322.32 crore to its lenders amid the ongoing litigations with Amazon and other related issues.

Future Group's proposed deal with Reliance, which was opposed by Amazon, also fell through.

In March, the lender through a public notice claimed its charge over the assets of FRL and warned the public against dealing with assets of the Kishore Biyani-led Future Group firm.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :Future RetailAmazonNCLTKishore BiyaniReliance Retail

First Published: Jun 10 2022 | 11:17 PM IST

Next Story