The National Company Law Tribunal (NCLT) has granted a 29-day extension for the completion of Future Retail’s (FRL) ongoing insolvency process, with the deadline now ending on September 15. This is the third time the deadline has been extended.
The tribunal’s Mumbai bench, which heard an application filed by FRL’s resolution professional on September 7, 2023, granted the extension. A written order is awaited, FRL said in a regulatory update.
Earlier on August 16, FRL’s resolution professional had sought an additional 29 days’ extension to conclude the bankruptcy process. On July 19, NCLT’s Mumbai bench had granted a 33-day extension to FRL’s administrator to complete its ongoing insolvency process and that deadline ended on August 17.
In April, the tribunal extended the date for completion of the resolution process by 90 days to July 15, as the deadline had ended on April 16.
Future Retail, which was admitted for insolvency proceedings after the company failed to meet its loan obligations, has been undergoing bankruptcy proceedings since July last year. Lenders had claimed dues worth ₹21,555 crore, of which ₹19,183 crore were admitted.
As per Section 12(1) of the bankruptcy code, the Corporate Insolvency Resolution Process (CIRP) should be completed within 180 days from the date of initiation of the process. However, the adjudicating authority has the right to grant a one-time extension of 90 days. The maximum time within which CIRP must be mandatorily completed, including any extension or litigation period, is 330 days.