Legally Bharat

The bankruptcy court has recently admitted four companies affiliated with the Future Group including Future Corporate Resources Pvt Ltd and Central Departmental Stores Pvt Ltd under the corporate insolvency resolution process (CIRP) in an application filed by the Central Bank of India.

The other companies include Ojas Tradelease and Mall Management Pvt Ltd and Iskrupa Mall Management Company Pvt Ltd. While admitting these companies through separate orders, the Mumbai bench of the National Company Law Tribunal (NCLT) has appointed Avil Jerome Menezes as interim resolution professional (IRP) of these companies.

“During the CIRP period, the management of the corporate debtor shall vest in the IRP or, as the case may be, the RP…” noted the division bench of judicial member KR Saji Kumar and technical member Sanjiv Dutt in its order against Central Departmental Stores. “ The officers and managers of the corporate debtor are directed to provide effective assistance to the IRP as and when he takes charge of the assets and management of the corporate debtor,” said the tribunal in its September 24 order.

Future Corporate Resources and Central Departmental Stores provided corporate guarantees for Future Group’s other affiliate Syntex Trading and Agency Pvt Ltd to the Central Bank of India for a loan in December 2019. The order in this case noted that the principal borrower failed to honour its obligation to repay in March 2022 and its loan account was classified as a Non-Performing Asset (NPA) in April 2022.

The tribunal noted that the amount of financial debt claimed to be in default is Rs 420 crore as of May 29, 2022, along with the interest and other charges.

In separate orders, the tribunal has admitted Iskrupa Mall Management Company after the company defaulted on its dues of about Rs 72 crore in May 2022. The lender had granted a term loan of Rs 150 crore in September 2015 to the company. Whereas, Ojas Tradelease and Mall Management Company was a corporate guarantor to Iskrupa Mall Management Company Pvt Ltd and hence admitted under the CIRP.

The order noted that the principal borrower in this case failed to honour its obligation to repay the principal and interest due on March 31, 2022 and its loan account was classified as a Non-Performing Asset on April 30, 2022.

Recently, another Future Group affiliate Acute Retail Infra Pvt Ltd was also admitted under CIRP in an application filed by Avendus Finance Pvt Ltd after the company defaulted on its dues of over Rs 65 crore.

Currently, several companies including Future Retail, Future Enterprises, Future Supply and Chain and Future Lifestyle and Fashion are among the key companies promoted by Kishore Biyani that are undergoing a corporate insolvency process.

  • Published On Sep 26, 2024 at 03:32 PM IST

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