Future Retail Faces Liquidation as NCLT Decision Ends Insolvency Resolution Efforts

The National Company Law Tribunal (NCLT) allowed the liquidation of Kishore Biyani-led Future Retail as the corporate insolvency resolution process (CIRP) expired with no resolution approved. NCLT Mumbai's bench named Sanjay Gupta as liquidator after the lenders requested liquidation in November 2023 due to unpaid debts exceeding Rs 17,000 crore.

The National Company Law Tribunal on Monday sanctioned the liquidation of Kishore Biyani-led Future Retail following the expiration of the corporate insolvency resolution process (CIRP) without an approved plan by lenders.

The Mumbai bench of NCLT, headed by Anil Raj Chellan and Kuldip Kumar Kareer, has appointed Sanjay Gupta as the liquidator.

Observing that the maximum period for CIRP has elapsed with no resolution plan approved by the Committee of Creditors (CoC), the tribunal stated, "This is a fit case for liquidation."

This decision follows an application filed by the resolution professional Vijaykumar V Iyer in November 2023, seeking liquidation after no viable resolution applicants emerged.

The application stemmed from a resolution passed by the CoC in October 2023, following the company's failure to repay over Rs 17,000 crore to its creditors. The insolvency application was submitted by the CoC, led by the Bank of India, in April 2022 and accepted by NCLT in July 2022.

Despite initial interest, no final resolution plans were submitted. Space Mantra, the sole resolution applicant with a Rs 550-crore bid, saw its plan rejected, prompting the liquidation approach.

(With inputs from agencies.)