Future Lifestyle Fashions Goes Under Insolvency Resolution

Future Lifestyle Fashions Ltd. said India’s National Company Law Tribunal (NCLT) admitted an insolvency resolution petition against the company filed by its financial creditor.

The petition was filed by Bank of India against Future Lifestyle under Section 7 of the Insolvency and Bankruptcy Code, according to the NCLT’s order. The petition claimed the Future Group company failed to make the payment of 185.85 crore rupees ($22.74 million).

The order was passed by the NCLT’s Judicial Member Kuldip Kumar Kareer and Technical Member Shyam Babu Gautam on 4 May.

Advocate Ravi Kadam appeared for the financial creditor, while lawyer Shyam Kapadia represented Future Lifestyle.

The NCLT approved the appointment of Ravi Sethia as the company’s interim resolution professional.

Future Lifestyle, the flagship fashion business of Future Group, operates more than 300 stores in over 90 cities, occupying 5.7 million square feet of retail space, according to its website.

The company owns and markets leading brands through its in-house retail chains Central and Brand Factory, exclusive brand outlets and other multi-brand outlets.

What Happens When Insolvency Professionals Fail To Discharge Their Duties Efficiently?

This could land insolvency professionals in trouble and draw the ire of the bankruptcy regulator Insolvency & Bankruptcy Board of India (IBBI). This happened with Coimbatore-based Rajagurusami Maheswaran, who ignored an e-mail that went to his “spam folder”, intimating about his appointment an IRP of Sandhhya Shipping Services Private Ltd.

If you are a resolution professional, then do keep a tab on the “spam folder” of your e-mail in order to avoid the IBBI’s admonishment and possible penalty.

(Note: $1 = 81.7421 Indian rupees)

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