The NCLT has admitted Kishore Biyani led Future Enterprises to insolvency resolution on February 27 on a petition by Foresight Innovations Pvt Ltd over Rs 1.58 crore default. The debt-ridden firm will have be auctioned to recover unpaid dues under the process.
In a regulatory filing, Future Enterprises said the National Company Law Tribunal on March 7 "ordered the commencement of corporate insolvency resolution process (CIRP)".
The NCLT appointed Jitender Kothari, a resolution professional, to manage the affairs of the company till it is sold to a successful bidder.
With the commencement of the resolution process, Kothari will hold the management of the company and the powers of the board of directors stand suspended.
The suspended directors and employees of the corporate debtor shall provide all documents in their possession and furnish every information in their knowledge to Kothari.
Foresight Innovations Pvt Ltd, a New Delhi-based supplier, has claimed a default of Rs 1.58 crore by Future Enterprises.
Future Enterprises has told the NCLT that it was not in a position to pay the creditor the due amount as the investigating agency had frozen its accounts.
Another operational creditor, Retail Detailz India had also filed a similar petition claiming a default of Rs 4.02 crore.
Future Enterprises was part of the 19 group companies operating in retail, wholesale, logistics and warehousing segments, which were supposed to be transferred to Reliance Retail as part of a Rs 24,713-crore deal announced in August 2020.
The deal was called off by billionaire Mukesh Ambani-led Reliance Industries in April last year.It had recently committed several defaults on payment of interest on its several non-convertible debentures.
The NCLT has already initiated insolvency proceedings against Future Group's flagship firm Future Retail Ltd. Financial creditors have claimed Rs 21,057 crore from Future Retail while operational creditors have claimed another Rs 265 crore.
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(Edited by : Pradeep John)
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