Insolvency Plea Against Kishore Biyani Led Future Enterprises Ltd., NCLT Mumbai Issues Notice

Brief Background

Future Enterprises Ltd. ("FEL") is a part of the Mr. Kishore Biyani led Future Group of companies, which have dominated the retail sector in India for years. While Future Retail Limited caters to the front end, FEL forms the backbone and links the retail arm with its infrastructure. FEL develops, owns and leases the retail infrastructure for the Future Group. Further, FEL also holds the Future Group's investments in subsidiaries and joint ventures including insurance, textile manufacturing, supply chain and logistics.

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

In April 2022, Foresight Innovations Pvt. Ltd. had filed a petition under Section 9 of the IBC before NCLT, Mumbai Bench, seeking initiation of CIRP against FEL over an alleged default of Rs. 1,58,78,942/-. The matter was first listed on 28.04.2022 whereby the NCLT Bench had issued notice to FEL. On the next date of hearing on 01.07.2022, the NCLT Bench had observed that service to FEL was complete and the matter was adjourned to 27.07.2022 for passing ex-parte order against FEL. On 27.07.2022 the matter was adjourned to 26.08.2022.

In a Regulatory filing dated 17.08.2022, FEL under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, has disclosed that Foresight Innovations Pvt. Ltd. has filed a petition under Section 9 of the IBC before the NCLT Mumbai Bench for initiating CIRP against FEL for an alleged default of Rs. 1,58,78,942/-.

Case Title: Foresight Innovations Pvt. Ltd. v Future Enterprises Ltd., C.P.(IB)-513(MB)/2022

Counsel for Petitioner: Mr. Sushil Aggarwal.

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