The National Company Law Tribunal, Mumbai bench in the case Bank of India v Future Lifestyle Fashions Limited, wherein the bench comprising of Judicial Member, Shri Kuldip Kumar Kareer and the Technical Member, Shri Shyam Babu Gautam while adjudicating the plea moved and has initiated the Corporate Insolvency Resolution Process, CIRP against the Future Lifestyle Fashions Ltd, which being the Future Group enterprise an dis promoted by Mr. Kishore Biyani. Therefore, the court appointed Mr. Ravi Sethia as the Interim Resolution Professional, IRP.
Facts of the Case:
The Corporate Debtor, Future Lifestyle Fashions Ltd. being the flagship fashion business of the Mr. Kishore Biyani led Future Group of companies, wherein it has dominated the retail sector in India for years. FLFL operates more than 300 stores across India and has owned the retail fashion chains such as Central and Brand Factory.
Therefore, the Financial Creditor, The Bank of India who being the member of a Consortium of Lenders had extended certain credit facilities to the Corporate Debtor for the purpose of its operations, expansion and working capital needs. Further, the financial creditor in the year 2013 has granted the credit facilities aggregating to an amount of Rs. 435 Crores to the Corporate Debtor which was last renewed in the
month of January 2020.
The court in the case stated that the account of the Corporate Debtor was declared Non-Performing Asset, NPA on May 31, 2022 and the loans could not be repaid.
Therefore, the plea was moved before the court by the Financial Creditor under Section 7 of the Insolvency and Bankruptcy Code, 2016, wherein seeking initiation of Corporate Insolvency Resolution Process, CIRP against the Corporate Debtor. Tus, the said amount in default is Rs. 185,84,50,611/- which being inclusive of interest.
It has also been observed by the Adjudicating Authority that since the debt and default have been established, the petition is liable to be admitted. Further, the court initiated CIRP against the Corporate Debtor. Thus, the court appointed Mr. Ravi Sethia as the Interim Resolution Professional.
The counsel, Advocate Ravi Kadam appeared for the petitioner.
The counsel, Advocate Shyam Kapadia represented
the Respondent.
