NCLT orders liquidation of Future Retail as resolution efforts fail

Future Retail Liquidation: The National Company Law Tribunal (NCLT) has ordered the liquidation of Future Retail, led by Kishore Biyani, after the corporate insolvency resolution process (CIRP) exceeded its maximum period without an approved resolution plan. The Mumbai bench of NCLT, comprising Anil Raj Chellan and Kuldip Kumar Kareer, appointed Sanjay Gupta as the liquidator.

The tribunal stated, "Given the application and the circumstances presented, it is clear that the CIRP period has expired without a Resolution Plan approved by the Committee of Creditors (CoC). We find this case appropriate for liquidation and hereby order the liquidation of the Corporate Debtor."

This decision follows the inability of Resolution Professional Vijaykumar V Iyer to secure any viable resolution applicants for the insolvent company. In November 2023, Iyer filed for liquidation at NCLT Mumbai after the lenders opted for this course of action, based on an October 2023 resolution passed by the CoC.

Led by the Bank of India, the CoC filed an insolvency application against Future Retail in April 2022 due to the company’s failure to repay debts exceeding Rs 17,000 crore to financial and operational creditors. The NCLT admitted the company under insolvency in July 2022. Despite initial interest from bidders, no final resolution plans were submitted. Space Mantra, a later bidder, offered a Rs 550-crore plan, which was rejected by the lenders. Consequently, the resolution professional sought the tribunal's approval for liquidation.

(With PTI inputs)