Insolvency plea against Future Enterprises filed in NCLT

New Delhi: Debt-ridden Future Enterprises Ltd on Wednesday said an operational creditor of the company has filed a plea before the National Company Law Tribunal to initiate insolvency proceedings against it.

"Foresight Innovations Private Limited... Operational Creditors of the Company had filed an application under Section 9 of the Insolvency and Bankruptcy Code 2016 for an alleged default amount of Rs. 1.58 crore -with National Company Law Tribunal, Mumbai Bench (NCLT)," Future Enterprises said in a regulatory filing.

The next date of hearing is August 26, 2022, it added.

Section 9 of the Insolvency and Bankruptcy Code (IBC) gives power to operational creditors of a company to initiate corporate insolvency resolution process in case of a default.

Future Enterprises Ltd (FEL), part of the Kishore Biyani-led 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.

FEL 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 the billionaire Mukesh Ambani-led Reliance Industries Ltd in April.

It had recently committed several defaults on payment of interest on its several non-convertible debentures.

The NCLT has already initiated insolvency proceedings against Future Group's flagship firm Future Retail Ltd.