The National Company Law Tribunal (NCLT) on Wednesday admitted Bank of India’s plea to initiate insolvency resolution proceedings against debt-ridden Future Retail Ltd (FRL).
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The tribunal rejected Amazon’s objection to initiating insolvency proceedings against Future Retail.
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Admitting the lenders’ plea, the NCLT appointed Vijay Kumar Iyar as the resolution professional for FRL.
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In April this year, BoI moved the tribunal seeking insolvency resolution proceedings against FRL, which has defaulted on loan repayments.
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On May 12, Amazon 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.
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Amazon had opposed the insolvency plea alleging that BoI had colluded with FRL and that any bankruptcy proceedings at this stage will compromise the e-commerce company’s rights.
Source : Daily Pioneer
