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After Future Retail, another Kishore Biyani company — Future Enterprise — has been dragged to the National Company Law Tribunal (NCLT) for insolvency. Retail Detailz India has claimed a default of ₹4.02 crore before the Mumbai bench of the NCLT.
“Please be informed that the company has received e-filing confirmation from Hon’ble National Company Law Tribunal, Mumbai bench, with respect to filing of an application by an Operational Creditor M/s. Retail Detailz India Private Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016 for an alleged default amount of ₹4,02,16,412.05 (including interest). No further date has been allotted so far for hearing the said application,” Future Enterprises informed.
Another application
Last week, Foresight Innovations Private Limited, who is an operational creditors of the company, had also filed an application under Section 9 of the code for an alleged default amount of ₹1.58 crore with the NCLT. The matter will be heard on August 26.
Future Enterprises is the parent company of Future Retail among 19 other companies. Future Retail was recently dragged to the NCLT by its financial creditor, Bank of India, for a default. The matter was admitted in the court. This comes even as the company has had multiple defaults.
Trouble brews
Future Retail has received claims from 33 financial creditors for a total of ₹21,057 crore, according to data released by the company that is under the corporate insolvency resolution process (CIRP). It has also received claims from operational creditors to the tune of ₹265 crore, other creditors’ claims amount to ₹112 crore whereas employee claims go up to ₹9 crore.
In August 2021, Future Retail had entered into an agreement to sell its assets to Reliance Retail for ₹24,713 crore. Amazon, which had invested ₹1,400 crore in one of the Future Group companies in 2019, had opposed the deal and dragged the group into arbitration. However, recently Future Retail said the deal would not go through because the company’s secured creditors had voted against it.
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