Future Enterprises Faces Second Plea To Initiate Insolvency

Retail Detailz India, an operational creditor to Future Enterprises Ltd., has filed a second insolvency petition against the debt-ridden firm, claiming a default of Rs 4.02 crore.

"The company has received e-filing confirmation from NCLT with respect to the filing of an application by Operational Creditor Retail Detailz India Pvt. under Section 9 of the IBC for an alleged default amount of Rs 4.02 crore," the Kishore Biyani-led firm said in a late evening filing on Tuesday.

No further date has been allotted so far for hearing the said application.

Last week, another operational creditor -- Foresight Innovations -- had filed an application under Section 9 of Insolvency and Bankruptcy Code, 2016, for an alleged default of Rs 1.58 crore before the Mumbai bench of NCLT.

The next date of hearing of this petition is Aug. 26, 2022.

Section 9 of the IBC gives power to operational creditors of a company to initiate a corporate insolvency resolution process in case of a default.

Operational creditors are those whose debt is owed on account of dues arising out of business transactions. This mostly includes claims for the delivery of goods or services and employment.

Future Enterprises, part of the Future Group, is facing difficulties like other firms of the group. On Tuesday, its Non-Executive Director Chandrapraksh Toshniwal resigned from the board of directors.

Future Enterprises was part of the 19 group companies operating in retail, wholesale, logistics and warehousing segments which were supposed to be transferred to Reliance Retail as part of a Rs 24,713-crore deal announced in August 2020. The deal was called off by Reliance Industries Ltd. in April.

Since then, several Future Group companies have defaulted on multiple payments of interest on several of its non-convertible debentures. The NCLT has already initiated insolvency proceedings against Future Retail Ltd.