Bank Of India Files Insolvency Plea Against Kishore Biyani Led Future Lifestyle Fashions

Recently, the flagship company of Future Group i.e. Future Retail Ltd., which operates popular retail chains such as Big Bazaar, Foodhall, Easyday Club and WH Smith, was admitted into Corporate Insolvency Resolution Process ("CIRP") by NCLT Mumbai Bench on 20.07.2022, over an application made by Bank of India.

Proceedings Before NCLT By Bank Of India

In a Regulatory filing dated 29.08.2022, FLFL under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, has disclosed that Bank of India has filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("IBC") before NCLT, Mumbai Bench, seeking initiation of Corporate Insolvency Resolution Process ("CIRP") against FLFL. An advance service of the petition has been made M/s Saraf and Partners to FLFL.

FLFL has also stated that its Board is in discussion with lending Banks for its proposal for restructuring of financial debt and would be submitting the same in due course of time after getting approval from the Board.

Petitions Already Pending Before NCLT

The petition filed by Bank of India is the third petition before NCLT Mumbai seeking CIRP against FLFL. In the aforementioned Regulatory filing, FLFL has also disclosed that in 2021 a petition under Section 7 of IBC was filed against it before NCLT Mumbai Bench, titled as Catalyst Trusteeship Limited v Future Lifestyle Fashions Ltd., C.P. (IB)/887(MB)2021, for a default of Rs. 451.98 Crores. The petition is pending adjudication and the matter is next listed on 30.08.2022. Subsequently, a petition under Section 9 of IBC was filed against FLFL before NCLT Mumbai Bench in 2022, titled as Lotus Lifespaces LLP v Future LifestyleFashions Ltd., C.P (IB)159/MB/2022, for a default of Rs. 150.37 Crores. The same is pending adjudication and is next listed on 26.09.2022.