Connect with us

Headlines Of The Day

NCLT to hear Amazon’s plea opposing insolvency proceedings on June 10

The National Company Law Tribunal (NCLT) will hear Amazon’s petition opposing the initiation of insolvency resolution proceedings against debt-ridden Future Retail Ltd on June 10.

A plea seeking initiation of insolvency resolution proceedings against FRL was filed by Bank of India (BoI), the lead banker in the consortium of lenders to the company.

Against this backdrop, the tribunal on Monday said it will hear Amazon’s petition on June 10.

On May 12, Amazon had filed an intervention application under Section 65 of the Insolvency and Bankruptcy Code that deals with provisions relating to penalty for fraudulent or malicious initiation of proceedings.

Amazon had opposed the insolvency application alleging that BoI had colluded with FRL and that any bankruptcy proceedings at this stage will compromise the e-commerce company’s rights.

It was the third time that the NCLT, on Monday, decided to have another hearing before deciding on admitting BoI’s petition against FRL.

At the virtual hearing, BoI counsel Ravi Kadam said the lender was planning to file an injunction to dismiss Amazon’s petition on the grounds that it was not maintainable.

In April, BoI had moved the tribunal seeking to initiate insolvency resolution proceedings against FRL, which has defaulted on loan repayments.

FRL has defaulted on payment of Rs 5,322.32 crore to its lenders amid the ongoing litigations with Amazon and other related issues. Future Group’s proposed deal with Reliance, which was opposed by Amazon, also fell through.

In March, the lender through a public notice claimed its charge over the assets of FRL and warned the public against dealing with assets of the Kishore Biyani-led Future group firm. PTI

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Copyright © 2022 TV Veopar Journal