NCLT directs bank to start insolvency process for Future Retail
22 July 2022, Mumbai:
The National Company Law Tribunal has directed the Bank of India to start the bankruptcy process for the cash-strapped retailer Future Retail. z
It dismissed Amazon’s allegations who accused Future Retail’s lenders of pushing the firm into insolvency by colluding with its founders.
The court also appointed an administrator to take over the management of Future Retail.
RELATED NEWS . NCLT: Adjournes Amazon’s plea
ALSO READ FRL: NCLT to continue hearing Amazon's plea
The ruling enables Reliance to rebuild Future Retail’s business through an insolvency process monitored by the court.
As per India’s bankruptcy law, all money recovery cases against Future Retail will now restart. The ruling effectively stops Amazon from pursuing an arbitration case in Singapore against Future Retail, though cases against Future Retail’s founder Kishore Biyani and his other companies can continue.
Explore: Fashion Brand News l Apparel News l Lifestyle News l Retail News l Textile News l Trade News l Startup News
Join our community on Linkedin