The NCLT Mumbai bench said that it will continue to hear the matter on June 14 after hearing the arguments of Rajiv Nayar and counsel of the e-commerce giant. the Bank of India (BoI) filed a plea seeking initiation of insolvency resolution proceedings against Future Retail Ltd.
The Mumbai bench of the tribunal held a virtual hearing in the matter on June 6. The petition of BoI is yet to be admitted. Amazon filed an intervention application under Section 65 of the Insolvency and Bankruptcy Code (IBC) on May 12 that deals with provisions relating to penalty for fraudulent or malicious initiation of proceedings.
Amazon opposed the insolvency application in which it alleged that BoI had colluded with FRL and any bankruptcy proceedings will compromise the e-commerce company’s rights. This was the third time when NCLT decided to have another hearing before deciding on admitting BoI’s petition against FRL.
BoI moved to the tribunal seeking to initiate insolvency proceedings against FRL which has defaulted on loan repayments 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.
The lender through a public notice, issued in March, claimed its charge over the assets of FRL and warned the people against dealing with assets of the Kishore Biyani-led Future Group firm.
first published:June 11, 2022, 7:42 p.m.
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