The hearing of Amazon's plea, initiating insolvency proceedings against debt-ridden Future Retail Ltd has been adjourned by the National Company Law Tribunal (NCLT) until June 14. A plea seeking initiation of insolvency resolution proceedings against Future Retail Ltd (FRL) was filed by Bank of India (BoI), the lead banker in the consortium of lenders of the company.
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In April, the BoI had moved the tribunal seeking to initiate insolvency proceedings against FRL, which had defaulted on loan repayments of Rs 5,322.32 crore to its lenders amid the ongoing litigations with Amazon and other related issues.
Amazon had opposed the insolvency application, alleging that BoI had colluded with FRL and that any bankruptcy proceedings at this stage would compromise the e-commerce company's rights.
On June 6, the Mumbai bench of the tribunal held a virtual hearing on the matter. BoI's petition is yet to be admitted. It was the third time the NCLT decided to have another hearing before admitting BoI's petition against FRL.
On May 12, Amazon filed an intervention application under Section 65 of the Insolvency and Bankruptcy Code (IBC) that deals with provisions relating to penalty for fraudulent or malicious initiation of proceedings.
Future Group's proposed deal with Reliance, which Amazon opposed, also fell through. In March, the lender, through a public notice, claimed its charge over the assets of FRL and warned the public against dealing with assets of the Kishore Biyani-led Future Group firm.
