The National Company Law Tribunal (NCLT) will continue to hear Amazon’s plea that opposed Bank of India’s (BoI) insolvency petition against debt-laden Future Retail on Monday.
The insolvency petition, filed by BoI in May, had come up for hearing before the Mumbai bench of tribunal again today. The bankruptcy court would continue hearing Amazon’s side on why its plea is maintainable, following which it will hear BoI’s arguments.
In its interlocutory application, Amazon had opposed the initiation of insolvency proceedings, alleging the bank had colluded with FRL and that bankruptcy proceedings at this stage will compromise its rights. The US firm had moved the application under Section 65 of the Insolvency and Bankruptcy Code (IBC), which deals with provisions relating to penalty for fraudulent or malicious initiation of proceedings.
BoI had earlier moved the NCLT in April to recover the debt of Rs 1,441 crore from FRL. The total exposure of banks to FRL is estimated to be at about Rs 17,000 crore, a figure which could climb to as high as Rs 25,000 crore if debt defaults continue, some creditors had said in court earlier.