Bank of India approaches NCLT to initiate insolvency proceedings against Future Retail

Bank of India approaches NCLT to initiate insolvency proceedings against Future Retail

A consortium of creditors raised concerns about the recovery of dues after Reliance Indu    stries took over 200 stores of the Kishore Biyani-owned company

The Bank of India has approached the Mumbai bench of the National Company Law Tribunal (NCLT) against Future Retail Limited for the initiation of the Corporate Insolvency Resolution Process (CIRP).

The Coram of Judicial Member Justice PN Deshmukh and Technical Member SB Vohra issued a notice to Future Retail on an application by the bank under the Insolvency and Bankruptcy Code (IBC). It allowed the company to furnish its response.

Filed through advocate Palash Agarwal, the application alleged that Future Retail had committed a default of Rs.3,495 crores through a one-time restructuring scheme between the bank and the company.

Appearing for the bank, Senior Advocate Ravi Kadam requested the bench that since vacations were approaching, the tribunal should grant at least one more hearing. Acceding to the request, the matter has been posted for May 12 for further hearing.

Recently, in a filing with the Bombay Stock Exchange, the Future Group stated that 69 percent of the creditors had voted against the composite scheme of the arrangement with the Reliance Group entities. It claimed that only 30 percent of creditors voted in favor of the arrangement.