The National Company Law Tribunal, Mumbai, ordered the liquidation of Future Retail while observing that the assets to be sold to pay off dues.
The Tribunal observed that as per Section 33 (1) of the Code, where the Adjusting Authority does not receive a Resolution Plan within the timelines specified in Section 12 of the Code, the Adjudicating Authority shall pass an order requiring the Corporate Debtor to the liquidated in the manner laid down therein. Thus, the Adjudicating Authority is bound to order liquidation of the Corporate Debtor in the facts and circumstances of the case.
The bench said that the maximum period of the CIRP has expired and no Resolution Plan has been approved by the CoC.
The tribunal was of the considered opinion that this is a fit case for liquidation.
The bench directed that to maximise the value of the Corporate Debtor, the Liquidator shall endeavour the sale of the Corporate Debtor as a going concern under Regulation 32A clause (e) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulation, 2016.
Facts
The application is filed u/s 33 of the Insolvency and Bankruptcy Code, 2016 by Mr. Vijaykumar Iyer, Resolution Professional of Future Retail Limited seeking liquidation order based on the resolution passed by the Committee of Creditors (CoC).
Case Information
Case Name: Mr. Vijaykumar V. Iyer, Resolution Professional of Future Retail Limited
Judicial Level & Location : NCLT, MUMBAI
Case Number : IA No. 5293/2023 In C.P. (IB) No. 527/MB/C-II/2022
Date of Decision : 29/07/2024
Decision in favor of: Applicant
Judges: Mr. Kuldip Kumar Kareer, Member (Judicial), Mr. Anil Raj Chellan, Member (Technical)