FRL gets time to file reply on insolvency plea

Amazon moves intervention application

The Mumbai Bench of the National Company Law Tribunal (NCLT) on Thursday granted more time to Future Retail (FRL) to file its reply to the insolvency petition moved by Bank of India against the company under Section 7 of the Insolvency and Bankruptcy Code (IBC), even as the bank was seeking an admission of the insolvency petition and consequently, the appointment of an interim resolution professional. The matter will be heard on June 6.

Meanwhile, Amazon has moved an intervention application under Section 65 of the IBC in the matter, which is being opposed by the bank on the ground that it does not have any locus standi on the matter as it is not a creditor of the company.

Amazon has also written a letter to the Reserve Bank of India, alleging collusion by FRL and banks to deny it its rights. In the letter it has said that FRL should not be allowed to go into bankruptcy proceedings as that would impact its rights further.

Corporate debtor, FRL, sought more time to file a reply to the petition moved against it, citing constraints that many of its directors’ terms have expired. It also alluded to a writ petition filed in the SC against the default notices sent by the banks to the company.

FRL has alleged that the defaulted notices by banks were erroneously issued despite the corporate debtor and lenders being in negotiations since December, wherein the firm had expressed its intention to adhere to the framework that was put in place but informed its inability to do so because of orders and injunctions passed in arbitration and related proceedings .