NCLT orders liquidation of Biyani-led Future Retail as resolution eludes

The National Company Law Tribunal on Monday 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 Mumbai bench of NCLT appointed Sanjay Gupta as the liquidator in the matter.

The tribunal, led by Anil Raj Chellan and Kuldip Kumar Kareer, in the order said, "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."

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

In November 2023, the resolution professional 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.

The retail firm owes more than Rs 17,000 crore to both its financial and operational creditors. Subsequently, after three months, the NCLT admitted the company under insolvency in July 2022.

In spite of initial interest, none of the applicants submitted final resolution plans.

Space Mantra, which was not a part of the initial list of bidders, ended up as the sole resolution applicant with a Rs 550-crore bid. Its plan was rejected by the lenders, following which the resolution professional approached the tribunal to liquidate the company.