Mumbai NCLT clears the decks for liquidation of Kishore Biyani-led Future Retail

In August 2022, market regulator Sebi ordered a forensic audit of the accounts of FRL for the financial years 2019-20, 2020-21 and 2021-22.

The Mumbai bench of the National Company Law Tribunal (NCLT) has allowed the liquidation of Kishore Biyani-led Future Retail as the maximum period of the corporate insolvency resolution process (CIRP) has expired with no resolution plan approved by the lenders.

The bench also appointed Sanjay Gupta as the liquidator in the matter.

The decision comes after the resolution professional, Vijaykumar Iyer, failed to get any resolution applicants to turn around the insolvent company.

The tribunal, led by Anil Raj Chellan and Kuldip Kumar Kareer, said in the order: "Looking at the application and averments made therein, it is evident that the maximum period of the CIRP has expired and no Resolution Plan has been approved by the CoC. We are of the considered opinion that this is a fit case for liquidation. Therefore, we hereby order the liquidation of the corporate debtor."

In November 2023, the resolution professional (RP) of Future Retail filed an application before NCLT Mumbai, seeking liquidation of the debt-ridden company after the lenders opted for the same.

The application was filed based on the resolution passed by the Committee of Creditors (CoC) in October 2023.

The CoC, led by public sector lender Bank of India, had filed an insolvency application against the company in April 2022, after it failed to repay.

In August 2022, market regulator Sebi ordered a forensic audit of the accounts of FRL for the financial years 2019-20, 2020-21 and 2021-22.

With agency inputs