The National Company Law Tribunal (NCLT) on Wednesday admitted Bank of India’s plea to provoke insolvency decision proceedings towards debt-ridden Future Retail Ltd (FRL).
The tribunal rejected Amazon’s objection to initiating insolvency proceedings towards Future Retail.
Admitting the lenders’ plea, the NCLT appointed Vijay Kumar Iyar because the decision skilled for FRL.
In April this yr, BoI moved the tribunal searching for insolvency decision proceedings towards FRL, which has defaulted on mortgage repayments.
On May 12, Amazon filed an intervention utility below Section 65 of the Insolvency and Bankruptcy Code that offers with provisions referring to penalty for fraudulent or malicious initiation of proceedings.
Amazon had opposed the insolvency plea alleging that BoI had colluded with FRL and that any chapter proceedings at this stage will compromise the e-commerce firm’s rights.